Evergold Closes $1,072,000 Private Placement to Support Follow-up Drilling at Emerging DEM1 Gold-Silver++ Discovery, BC

Evergold Corp.

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TORONTO, June 12, 2024 (GLOBE NEWSWIRE) -- Evergold Corp. (TSX-V: EVER, WKN: A2PTHZ) (“Evergold” or the “Company”) is pleased to report that it has closed a first tranche of its previously announced (news, May 21, 2024) non-brokered private placement financing for aggregate gross proceeds of $1,072,000. The Company may, or may not, raise additional capital in a second tranche of the same financing for potential closing on or before July 6, 2024. The majority of the proceeds from the financing will be used for follow-up drilling late this summer and fall of the large-scale DEM1 porphyry prospect in central B.C., where a small, first-ever 3-hole reconnaissance drill program carried out last October-November delivered broad intercepts of low-grade gold and silver from surface and, within that broad envelope, local high grades of an impressive spectrum of sulphides and high-value elements, including precious and strategic metals (see news, January 15, 2024). Encouragingly, a geophysical survey completed in May 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).

“We’re pleased to have secured the essential funding required for the crucial follow-up drill holes at DEM1, as the May geophysical results suggest that the two widely spaced drill pads for last fall’s program were set up immediately lateral to – and the 3 holes drilled from those pads were literally scratching the edges of - where we really need to be,” said Kevin Keough, President & CEO. “As such, the next few holes may really open the DEM1 prospect up. We’ll also be doing preliminary reconnaissance sampling of the newly identified DEM2 prospect to the southeast of DEM1, where historical lake sediment sampling returned high values of copper, molybdenum and cobalt.”

Further details on the DEM property and the DEM1 prospect may be found on the Company’s website at www.evergoldcorp.ca/projects/dem-property/ and in a NI 43-101 technical report entitled “Technical Report on the DEM Property” dated August 30, 2023, posted thereon and on the Company’s issuer profile at SEDAR+.

As now closed, the first tranche of the May 1 financing has resulted in the issuance of 13,537,000 flow-through units (“FT Units”) at a price of $0.05 per FT Unit and 8,777,778 hard-dollar units of the Company (“HD Units”) at a price of $0.045 per HD Unit (the “Offering”). Each FT Unit is comprised of one (1) common share of the Company qualifying as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act (Canada) (a “FT Share”), and one (1) common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional common share of the Company (a “Warrant Share”) at an exercise price of $0.06 per Warrant Share for a period of twenty-four (24) months following the closing of the Offering. Each HD Unit is comprised of one (1) common share of the Company (a “Common Share”), and one (1) Warrant.