Evergold Announces Private Placement of up to $3,500,000 to Support Follow-up Drilling at DEM Gold-Silver++ Discovery, BC

Evergold Corp.

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TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- Evergold Corp. (TSX-V: EVER, OTC: EVGUF, WKN: A2PTHZ) (“Evergold” or the “Company”) is pleased to announce that it intends to complete a non-brokered private placement financing for aggregate gross proceeds of up to $3,500,000 through the issuance of a combination of hard-dollar units of the Company (“HD Units”) at a price $0.045 per HD Unit and flow-through units (“FT Units”) at a price of $0.050 per FT Unit (the “Offering”).   It is expected that the majority of the gross proceeds from the sale of the FT Units will be used for drilling the large-scale DEM1 porphyry prospect in central B.C., where a small, first-ever 3-hole reconnaissance drill program carried out last fall delivered broad intercepts of low-grade gold and silver from surface and, within that broad envelope, local high grades of an impressive spectrum of high-value elements, including precious and strategic metals (see news, January 15, 2024).   Encouragingly, a geophysical survey completed earlier this month over the immediate area of the DEM1 prospect revealed a large target, suggestive of the presence of abundant sulphides, extending to depth below the reconnaissance drill holes (see news, May 13, 2024).

“The early drill results from DEM1 demand immediate follow-up, and we’re keen to get down to it this season,” said Kevin Keough, President and CEO. “As a founder and key shareholder with considerable equity exposure to this company, neither I nor the other directors take lightly the level of dilution required to finance the next stage of drilling. However, the only way to add real value to a junior mineral exploration company is with the drill bit, achieving and developing discoveries of merit, which we believe DEM to be, and it’s a capital-intensive process. That said, precious metal prices are very strong, and we retain 100% of the upside exposure to the DEM1 prospect, in addition to our other key, fully drill-permitted gold-silver properties: Golden Lion in B.C., and Rockland, Nevada. These assets, combined with our current very low share price (less than half the level at which we capitalized the company on founding), presents a compelling value proposition. Very strong results out of the ground, which we believe the DEM1 system is capable of delivering, should therefore be attended by a corresponding upward re-rating in our share price, regardless of our capital structure.”

In connection with the Offering, the Company has entered into a fiscal advisory agreement with Canaccord Genuity Corp. (“Canaccord”). Subject to the approval of the TSX Venture Exchange (“TSXV”), the Company shall compensate Canaccord in the amount of $25,000, payable in hard-dollar units of the Company (the “Compensation Units”) to be issued at C$0.045 per unit with the same terms as the Offering. In addition, finder’s fees in cash or securities, or a combination of both, may be payable by Evergold in connection with the Offering, subject to the rules of the TSXV.