TORONTO, February 1, 2021 – Evergold Corp. (“Evergold” or the “Company”) (TSX-V: EVER) has accepted a bought deal financing with Canaccord Genuity Corp. acting as Underwriter (the “Underwriter”), under which the Underwriter has agreed to purchase on a bought deal basis $2,700,000 hard dollar units (“HD Units”) at a price of $0.20 per Unit (“HD Offering Price”) and $3,300,000 flow-through dollar units (“FT Units”) at a price of $0.22 per Unit (“FT Offering Price”), for total gross proceeds of $6,000,000 (“Offering”), with a lead order from Palisades Goldcorp Ltd. Each FT Unit shall consist of one common share of the Company 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). Each HD Unit shall consist of one common share of the Company and one Warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share”) at an exercise price of C$0.30 for a period of 3 years following the closing of the Offering.
The Underwriter will have an option (the “Underwriter Option”) to increase the size of the Offering by up to C$700,000, in FT Units at the FT Offering Price, which Underwriter Option is exercisable, in whole or in part, up to 48 hours prior to the closing of the Offering.
“We are delighted to have the strong support of Palisades, a new investor in our Company, along with several of our long-standing funds including Sprott, Middlefield and Maple Leaf Funds,” said Kevin Keough, President & CEO. “Their participation in this financing is appreciated, and a real vote of confidence in our prospects as we prepare to drill, in the approaching field season, our exciting Snoball and Golden Lion gold-silver projects, and advance our new high-grade Rockland, Nevada gold-silver property.”
Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the ”Exchange”) and applicable securities regulatory authorities. All securities issued and issuable pursuant to the Offering will be subject to a hold period of four months and one day after the date of issuance. In connection with the Offering, the Company may pay commissions to eligible persons in accordance with the policies of the Exchange.
Closing is expected on or about February 23, 2021 and is subject to Toronto Stock Exchange and other necessary regulatory approvals.
The proceeds raised from the sale of FT Shares will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Tax Act) on the Company’s flagship properties in northern British Columbia, Canada. The proceeds raised from the sale of HD Units will be used for general working capital purposes and for exploration on the Company’s B.C. and Nevada properties.
This news release does not constitute an offer to sell or a solicitation of an offer to sell of any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Palisades Goldcorp
Palisades Goldcorp is Canada’s resource focused merchant bank. Palisades’ management team has a demonstrated track record of making money and is backed by many of the industry’s most notable financiers. With junior resource equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns.
Evergold Corp. has been assembled by a team with a record of recent success in British Columbia, combining four 100%-owned properties in prime B.C. geological real estate from well-known geologist C.J. (Charlie) Greig, with the recently optioned Rockland property in Nevada, seasoned management, and a qualified board. The Company’s flagship assets consist of the Snoball property, located in the heart of BC’s famed Golden Triangle, where drilling in 2020 achieved the discovery of a new high-grade intrusion-related gold-silver system on Pyramid Peak; the Golden Lion property, located at the north end of B.C.’s Toodoggone region, where drilling in 2020 confirmed the presence of a large-scale epithermal-style gold-silver zone at the GL1 Main prospect; and the past-producing high-grade Rockland gold-silver property in Nevada. All three of these properties host discoveries and/or zones of precious metals that the Company believes offer considerable near-term upside.
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