Evergold Announces Closing of Previously Upsized C$8,000,000 Bought Deal Private Placement Financing with a Lead Order from Palisades Goldcorp

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TORONTO, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Evergold Corp. (“Evergold” or the “Company”) (TSX-V: EVER) is pleased to announce that it has closed its previously announced and upsized bought deal private placement for total gross proceeds of C$8,000,000 (the “Offering”), with a lead order from Palisades Goldcorp Ltd. Under the Offering, a total of 17,500,000 units (the “HD Units”) were sold at a price of C$0.20 per HD Unit for gross proceeds of C$3,500,000 and 20,454,546 flow-through units (the “FT Units” and, together with the HD Units, the “Offered Units”) were sold at a price of C$0.22 per FT Unit for gross proceeds of C$4,500,000. Each FT Unit is comprised of one common share in the capital of the Company (each a “Common Share”) and one-half of one transferable Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”), each of which will qualify as a “flow-through share” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”). Each HD Unit is comprised of one Common Share and one Warrant. Each whole Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price of C$0.30 per Warrant Share for a period of 3 years following the closing of the Offering.

“I would like to again thank Palisades Goldcorp Ltd., a new investor in our Company, along with many of our existing retail shareholders and several of our long-standing fund supporters, including Plethora, Sprott, Middlefield and Maple Leaf Funds, who understand the strong prospects that lie ahead of this Company, and believe in what we are trying to achieve,” said Kevin Keough, President & CEO. “The Evergold team is very much looking forward to the fast-approaching field season, and drilling for success at both our Snoball and Golden Lion prospects in northern B.C.”

The Offering was completed through Canaccord Genuity Corp., as sole underwriter (the “Underwriter”). In consideration for the services provided by the Underwriter in connection with the Offering, on closing the Company paid to the Underwriter a cash commission equal to 6.0% of the aggregate gross proceeds from the Offering, other than in respect of sales to certain purchasers on which the cash commission was reduced to 2.0% of the aggregate gross proceeds from such sales, and issued to the Underwriter that number of broker warrants (the “Broker Warrants”) equal to 6.0% of the aggregate number of Offered Units sold pursuant to the Offering, other than in respect of sales of Offered Units to certain purchasers on which no Broker Warrants were issued. Each Broker Warrant is exercisable, at any time until February 23, 2023, to acquire one Common Share (a “Broker Warrant Share”) at a price of C$0.22 per Broker Warrant Share.