TORONTO, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Evergold Corp. (TSX-V: EVER, OTC: EVGUF, WKN: A2PTHZ) (“Evergold” or the “Company”) is pleased to announce, further to its news release dated January 11, 2021, in connection with the signing of a Letter Agreement, that it has now entered into a Definitive Agreement with vendor Enigma Resources LLC (“Enigma”), for an option to purchase the Rockland, Nevada gold-silver property (the “Rockland Property”). The terms of the Definitive Agreement remain the same as those of the Letter Agreement, details of which may be found in the January 11, 2021 news release. The aggregate consideration for the acquisition of the Rockland Property is comprised of: (i) USD$805,000 in cash, (ii) 500,000 common shares, and (iii) work commitments equal to USD$1,675,000, all payable in installments over a five-year term. At the election of the Company, the final cash installment of USD$500,000 may be paid in common shares at a price per share equal to the greater of USD$0.30 or the volume-weighted average price of the shares traded in the 20 days prior to the date of issuance, for a maximum of 1,666,666 shares.
The Rockland Property hosts a long (+800 metres), broad (~200 metres), gold-silver zone encompassing high-grade intervals and accompanied by strong trace element geochemistry, which the Company believes may reflect an underlying high-grade epithermal system akin to those at the nearby Aurora (Hecla Mining) and Bodie vein districts, each with historical production exceeding 1.5 million ounces of gold at grades of greater than 1 ounce per ton.
The Rockland property’s near-term exploration potential and drive-on, year-round access make it strongly complementary to the Company’s flagship Snoball and Golden Lion prospects in northern British Columbia. At Snoball, the Company discovered an early-stage high-grade gold-silver vein system in Phase 1 sampling and drilling in 2020, and a large-scale gold-silver zone has been outlined at Golden Lion by the Company’s 2020 Phase 1 drilling and by historical drilling carried out by Newmont in the 1980’s.
The Company recently announced (see news releases dated February 1, 2021) an $8 million bought-deal financing (the “Financing”) which is expected to close on February 23, 2021. The Company is now preparing and intends to use some of the proceeds of the Financing to again drill both the Snoball and Golden Lion prospects in the coming field season, while compilation and interpretation of Rockland property data is underway. The Company’s objective at Rockland this year is methodical development of high-quality drill targets for testing in early 2022.
Andrew J. Mitchell, P.Geo., Vice President, Exploration for Evergold Corp. and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
About Evergold
Evergold Corp. has been assembled by a team with a record of recent success in British Columbia, combining four 100%-owned properties in prime B.C. geological real estate from well-known geologist C.J. (Charlie) Greig, with the recently optioned Rockland property in Nevada, seasoned management, and a qualified board. The Company’s flagship assets consist of the Snoball property, located in the heart of BC’s famed Golden Triangle, where drilling in 2020 achieved the discovery of a new high-grade intrusion-related gold-silver system on Pyramid Peak, and the Golden Lion property, located at the north end of B.C.’s Toodoggone region, where drilling in 2020 confirmed the presence of a large-scale epithermal-style gold-silver zone at the GL1 Main prospect.
For additional information, please contact:
Kevin M. Keough
President and CEO
Tel: (613) 622-1916
www.evergoldcorp.ca
kevin.keough@evergoldcorp.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the anticipated closing date of the Financing and anticipated use of proceeds of the Financing; the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.