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TORONTO, Feb. 1, 2021 /CNW/ - Evergold Corp.
("Evergold" or the "Company") (TSXV: 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.
About Evergold
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, the Offering, the Company's
objectives, goals or future plans, statements, exploration results,
potential mineralization, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement
of operations and estimates of market conditions. Factors that
could cause actual results to differ materially from such
forward-looking information include, but are not limited to failure
to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility
study which recommends a production decision, the preliminary
nature of metallurgical test results, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, political risks, inability to fulfill the duty
to accommodate First Nations and other indigenous peoples,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set
out in the Company's public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
SOURCE Evergold Corp.