Evergold Closes $1.17 Million Financing With Respected Funds as Field Season Gets Underway

TORONTO, May 22, 2020 (GLOBE NEWSWIRE) -- Evergold Corp. ("Evergold" or the "Company") (TSX-V: EVER) is pleased to announce that it has closed a non-brokered private placement financing for aggregate gross proceeds of $1,177,450 to certain funds managed by Sprott Asset Management LP, Middlefield Capital Corp., and Backer Wealth Management Inc. (the “Financing”). Under the Financing, the Company issued 1,757,388 flow-through common shares (“FT Shares”) at a price of $0.67 per FT Share, a premium to both the 15 and 30-day VWAPs, and a price per share more than three times that of the Company’s 20-cent initial public offering last fall. Inclusive of the estimated $1,129,000 net proceeds of the Financing, plus $547,923 received to date from the exercise of 2,312,550 in-the-money warrants, less prepaid exploration expenses approximating $300,000, the Company presently has estimated working capital of $3,581,400.

“Selectively placing a small offering now, with several of the most prominent funds and top fund managers in the business, is the prudent thing to do, and helpful to our longer-term prospects,” said Kevin Keough, President and CEO. “In the event that we have discovery success with our Phase I drill programs this summer, the scale of our programs will expand and our needs for capital increase also. Given the ongoing economic disruption and market volatility, we can’t be entirely sure markets will be open to us at that time. We’re therefore happy to have the support of Sprott, Middlefield and Backer Wealth, the more so for the added attention to our plans that their involvement in Evergold will bring.”

The proceeds raised from the Financing will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)). The Company is fully funded to complete this season’s first-ever drilling of high priority targets on the Company’s flagship Snoball and Golden Lion properties in northern British Columbia, Canada. At Snoball, where key drill pads are already in place, drilling is expected to get underway following camp setup shortly after June 15. At Golden Lion, where field work commenced Wednesday this week with a survey of target areas and proposed drill sites, camp mobe-in will start approximately June 10 and, shortly thereafter, geophysical, geochemical and geological programs to refine drill targets. Drilling will get underway at Golden Lion after July 20.