Evergold Signs Definitive Agreement to Option the Rockland Gold-Silver Property, Nevada
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.
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