E2Gold Provides Update

Rhea-AI Summary

E2Gold Inc. (TSXV: ETU, OTCQB: ETUGF) has announced the termination of the Hawkins Property option agreement, resulting in the company relinquishing its interest in the optioned claims within its Hawkins property package. The company retains other claims in the greenstone belt.

CEO Eric Owens cited challenging market conditions for junior gold explorers and underwhelming drill results around the McKinnon Zone Resource as factors limiting available exploration funds. The company will now focus on exploring identified gold and base metal targets on its remaining staked claims.

E2Gold is currently conducting a strategic business review and exploring alternative opportunities, including potential mergers and acquisitions.

Positive

• Company maintains claims in the greenstone belt with multiple gold and base metal targets
• Active pursuit of strategic alternatives including M&A opportunities

Negative

• Complete loss of interest in Hawkins Property optioned claims
• Poor drill results around McKinnon Zone Resource
• funding available for exploration due to market conditions
• Challenging market conditions affecting operations

Toronto, Ontario--(Newsfile Corp. - April 17, 2025) - E2Gold Inc. (TSXV: ETU) (OTCQB: ETUGF) reports that the Hawkins Property option agreement, covering a portion of E2Gold's 80 km long Hawkins property package, has been terminated. E2Gold retains zero interest in those optioned claims, but still maintains a sizable claim group in the greenstone belt.

Eric Owens, President and CEO, commented, "In addition to poor market conditions for junior gold explorers in recent years, drill results to-date in and around the McKinnon Zone Resource have not inspired market support. This has resulted in fewer funds available for us to conduct needed exploration."

E2Gold has identified numerous gold and base metal targets on its staked claims that warrant further exploration. These targets will be the primary focus of our upcoming endeavours.

Additionally, E2Gold is conducting a comprehensive review of its business strategies and is engaged in discussions to explore alternative project opportunities, including specific merger and acquisition scenarios.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a large flagship property in north-central Ontario, about 140 km east of the Hemlo Gold Mine, and 75 km north of the Magino and Island Gold Mines.

For further information please contact:

Eric Owens	Jeff Pritchard
President and CEO	VP Corporate Development
Eric.Owens@e2gold.ca	info@e2gold.ca
+1 647 699 3340

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of E2Gold, including with respect to the receipt of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248978

FAQ

What happened to E2Gold's (ETUGF) Hawkins Property option agreement?

E2Gold's Hawkins Property option agreement was terminated, resulting in the company losing all interest in those optioned claims while maintaining other claims in the greenstone belt.

Why did E2Gold (ETUGF) terminate the Hawkins Property agreement in April 2025?

The termination was due to poor market conditions for junior gold explorers and underwhelming drill results around the McKinnon Zone Resource, which led to exploration funding.

What are E2Gold's (ETUGF) future plans after the Hawkins Property termination?

E2Gold plans to focus on exploring gold and base metal targets on its remaining staked claims while conducting a business strategy review and exploring M&A opportunities.

How has the McKinnon Zone Resource performance affected E2Gold (ETUGF)?

Drill results around the McKinnon Zone Resource have not met expectations, contributing to reduced market support and funding for exploration activities.