Gold79 Mines to Issue Shares for Payment Obligation
Ottawa, Ontario–(Newsfile Corp. – July 23, 2024) – Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) (“Gold79” or the “Company”) has announced its intention to issue 306,396 common shares to fulfill a US$48,000 (CAD$66,024) share payment obligation under an option agreement for a portion of the Gold Chain project in Arizona. The issued shares will be subject to a four-month and one-day statutory hold period from the date of issuance, pending TSX-V approval.
Details of the Transaction
The decision to issue shares instead of making a cash payment allows Gold79 Mines to fulfill its option agreement obligations for the Gold Chain project without depleting its cash reserves. By opting for a shares-for-debt transaction, the company is preserving its financial resources for other operational needs.
Insight
Issuing shares for payment obligations is a common practice in the mining industry, especially for companies looking to conserve cash while still meeting their financial commitments. While this method may lead to potential dilution for existing shareholders, it can be a strategic move to maintain liquidity and advance project development without additional financial strain.
About Gold79 Mines Ltd.
Gold79 Mines Ltd. is a TSX Venture listed company focused on building ounces in the Southwest USA. The company has strategic partnerships with major gold producers and is actively working on developing its Gold Chain project in Arizona and advancing projects in Nevada.
Positive and Negative Considerations
Positive
- Fulfilling option agreement obligations for the Gold Chain project in Arizona
- Preserving cash by issuing shares instead of making a cash payment
Negative
- Potential dilution of existing shareholders’ ownership due to new share issuance
FORWARD-LOOKING STATEMENTS: This press release may contain forward-looking statements that are made as of the date hereof and are based on current expectations, forecasts, and assumptions. Please refer to the risks set forth in the Company’s most recent annual MD&A and continuous disclosure documents.
Disclaimer: Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit here.
FAQ
How many shares is Gold79 Mines (AUSVF) issuing for the Gold Chain project payment?
Gold79 Mines intends to issue 306,396 common shares for the Gold Chain project payment.
What is the value of the share payment Gold79 Mines (AUSVF) is making for the Gold Chain project?
The share payment is valued at US$48,000 (CAD$66,024).
Where is Gold79 Mines’ (AUSVF) Gold Chain project located?
The Gold Chain project is located in Arizona.
What is the hold period for the new shares issued by Gold79 Mines (AUSVF)?
The new shares will have a statutory hold period of four months and one day from the date of issuance.
What approval is Gold79 Mines (AUSVF) waiting for regarding this share issuance?
Gold79 Mines is waiting for TSX-V approval for this shares-for-debt transaction.
Gold79 Mines to Issue Shares for Payment Obligation
Ottawa, Ontario–(Newsfile Corp. – July 23, 2024) – Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) (“Gold79” or the “Company”) has announced its intention to issue 306,396 common shares to fulfill a US$48,000 (CAD$66,024) share payment obligation under an option agreement for a portion of the Gold Chain project in Arizona. The issued shares will be subject to a four-month and one-day statutory hold period from the date of issuance, pending TSX-V approval.
Details of the Transaction
The decision to issue shares instead of making a cash payment allows Gold79 Mines to fulfill its option agreement obligations for the Gold Chain project without depleting its cash reserves. By opting for a shares-for-debt transaction, the company is preserving its financial resources for other operational needs.
Insight
Issuing shares for payment obligations is a common practice in the mining industry, especially for companies looking to conserve cash while still meeting their financial commitments. While this method may lead to potential dilution for existing shareholders, it can be a strategic move to maintain liquidity and advance project development without additional financial strain.
About Gold79 Mines Ltd.
Gold79 Mines Ltd. is a TSX Venture listed company focused on building ounces in the Southwest USA. The company has strategic partnerships with major gold producers and is actively working on developing its Gold Chain project in Arizona and advancing projects in Nevada.
Positive and Negative Considerations
Positive
- Fulfilling option agreement obligations for the Gold Chain project in Arizona
- Preserving cash by issuing shares instead of making a cash payment
Negative
- Potential dilution of existing shareholders’ ownership due to new share issuance
FORWARD-LOOKING STATEMENTS: This press release may contain forward-looking statements that are made as of the date hereof and are based on current expectations, forecasts, and assumptions. Please refer to the risks set forth in the Company’s most recent annual MD&A and continuous disclosure documents.
Disclaimer: Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit here.
FAQ
How many shares is Gold79 Mines (AUSVF) issuing for the Gold Chain project payment?
Gold79 Mines intends to issue 306,396 common shares for the Gold Chain project payment.
What is the value of the share payment Gold79 Mines (AUSVF) is making for the Gold Chain project?
The share payment is valued at US$48,000 (CAD$66,024).
Where is Gold79 Mines’ (AUSVF) Gold Chain project located?
The Gold Chain project is located in Arizona.
What is the hold period for the new shares issued by Gold79 Mines (AUSVF)?
The new shares will have a statutory hold period of four months and one day from the date of issuance.
What approval is Gold79 Mines (AUSVF) waiting for regarding this share issuance?
Gold79 Mines is waiting for TSX-V approval for this shares-for-debt transaction.
