TORONTO, February 16, 2021 (GLOBE NEWSWIRE) – Evergold Corp. (TSX-V: EVER, OTC: EVGUF, WKN: A2PTHZ) (“Evergold“or the”Society“) is pleased to announce, following its press release dated January 11, 2021, as part of the signing of a letter of agreement, that it has now concluded a definitive agreement with the supplier Enigma Resources LLC (“Enigma”), for an option to purchase the Rockland, Nevada gold and silver property (the “Rockland Property”). The terms of the final agreement remain the same as those of the letter of agreement, including Details can be found in the press release of January 11, 2021. The aggregate consideration for the acquisition of the Rockland property is comprised of: (i) US $ 805,000 in cash, (ii) 500,000 common shares, and (iii ) work commitments equivalent to US $ 1,675,000, all payable in installments over a five-year period. At the option of the Company, the final cash installment of US $ 500,000 may be paid in common shares at a price per share equal to greater of US $ 0.30 or volume weighted average price shares traded during the 20 days preceding the issue date, for a maximum of 1,666,666 shares.
The Rockland property is home to a long (+800 meters), wide (~ 200 meters) gold-silver zone encompassing high-grade intervals and accompanied by strong trace element geochemistry, which the Company believes may reflect a system High-grade underlying epithermal similar to that of the neighboring lode districts of Aurora (Hecla Mining) and Bodie, each with historical production exceeding 1.5 million ounces of gold at grades greater than 1 ounce per tonne.
The Rockland property’s short-term exploration potential and year-round access by car make it highly complementary to the Snoball and Golden Lion Company’s flagship prospects in northern British Columbia. At Snoball, the Company discovered an early stage high-grade gold-silver vein system as part of Phase 1 sampling and drilling in 2020, and a large-scale gold-silver zone was delineated at Golden Lion by drilling and the Company’s 2020 Phase 1. by the historic drilling carried out by Newmont in the 1980s.
The Company recently announced (see press releases dated February 1, 2021) a bought deal financing of $ 8 million (the “Financing”) which is expected to close on February 23, 2021. The Company is now preparing and has the He intends to use a portion of the proceeds from the financing to re-drill the Snoball and Golden Lion prospects during the next field season, while the compilation and interpretation of data from the Rockland property is underway. The Company’s goal at Rockland this year is the orderly development of high quality drill targets for testing in early 2022.
Andrew J. Mitchell, P.Geo., Vice President, Exploration for Evergold Corp. and qualified person as defined in NI 43-101, has reviewed and approved the technical information contained in this press release.
Evergold Corp. was assembled by a team with a recent history of success in British Columbia, combining four 100% owned properties in prime geological real estate in British Columbia from well-known geologist CJ (Charlie) Greig, with the Rockland property recently electing in Nevada, seasoned management and qualified counsel. The Company’s flagship assets consist of the Snoball property, located in the heart of British Columbia’s famous Golden Triangle, where drilling in 2020 uncovered a new gold-silver system linked to a high-grade intrusion. on Pyramid Peak, and the Golden Lion property, located at the northern end of the Toodoggone region of British Columbia, where drilling in 2020 confirmed the presence of a large-scale epithermal-style gold-silver zone on main prospect GL1.
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Caution regarding forward-looking information
This press release includes certain “forward-looking statements” which do not consist of historical facts. Forward-looking statements include estimates and statements that describe the future plans, objectives or goals of the Company, including terms indicating that the Company or management expects a condition or reported result to occur. Forward-looking statements may be identified by words such as “believes”, “anticipates”, “expects”, “believes”, “may”, “could”, “would”, “will” or “will”. Because forward-looking statements are based on assumptions and deal with 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. The risks, uncertainties and other factors involved in 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 contained in this press release includes, without limitation, the expected closing date of the financing and the intended use of the proceeds from the financing; the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, mineral resource estimate, exploration and mine development plans, timing of commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from this forward-looking information include, but are not limited to, inability to identify mineral resources, inability to convert estimated mineral resources into reserves, inability complete a feasibility study that recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failure to obtain government, environmental or other approvals required for the project, political risks , failure to meet the duty to accommodate First Nations and other Indigenous peoples, an inability to predict and counter the effects of COVID-19 on the Company’s business, including, but not limited to, the effects of COVID-19 on commodity prices, capital market conditions , restrictions on labor and international travel and supply chains, uncertainties relating to the availability and costs of necessary financing in the future, fluctuations in the stock markets, inflation, variations in exchange rates, fluctuations in the prices of raw materials, delays in the development of projects, investment and operating costs varying significantly from estimates and other risks involved in the mineral exploration and development industry, and the risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in the preparation of forward-looking information in this press release are reasonable, one should not place undue reliance on such information, which only applies as of the date of this press release. press release, and no assurance can be given as such events will occur within the timeframe disclosed or will not occur 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, except as required by law.