en.Wedoany.com Reported - Element79 Gold Corp. has announced the sale of its entire stake in the Lucero project in Peru. The mining company signed a binding memorandum of understanding on June 10, 2026, to transfer all shares of Minas Lucero del Sur S.A.C. (MLDS) to a private investor. The transaction consideration is $2 million, with closing expected on July 31, 2026.

Under the agreement, the buyer is required to pay a non-refundable deposit of $300,000, which will be deducted from the final purchase price. The transaction is subject to customary closing conditions, including obtaining necessary regulatory approvals. The decision to sell the Lucero project was based on a strategic review by Element79 Gold's board of directors, which considered the project's long-term financial and operational risks, particularly force majeure factors that have been in effect since June 2025. The company believes that selling the asset is the most prudent option to reduce contractual liabilities and maintenance costs.

Element79 Gold Director James C. Tworek stated that exiting the Lucero project was a difficult decision, as it was once a core asset of the company. However, the board determined that continuing to hold it under current circumstances would pose greater financial and contractual risks. Transferring the project to a private group will help more effectively manage local community and social relations in Peru.

Proceeds from the sale will be partially used to fulfill contractual obligations to Condor Resources Ltd. and maintain the validity of the project's mining rights. Element79 Gold expects to retain approximately $600,000 in net proceeds after completing these payments. Additionally, the agreement includes a contingent right: if the buyer resells the Lucero project within 18 months after the transaction closing, Element79 Gold will receive 25% of the gross profit.

The Lucero project is a high-grade gold and silver mining asset covering approximately 10,813 hectares, historically demonstrating production potential, though only partially commercially exploited. Element79 Gold is currently shifting its business focus to its projects in Nevada, USA, including Gold Mountain and Elephant, while seeking to maximize value for shareholders.

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