Evergold Announces Closing of $1,242,000 Private Placement to Support First-Ever Drilling of High Potential DEM Porphyry Copper- Gold-Silver Prospect, BC
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NEWS RELEASE
Evergold Announces Closing of $1,242,000 Private Placement to
Support First-Ever Drilling of High Potential DEM Porphyry Copper-
Gold-Silver Prospect, BC
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario – September 29, 2 023 - Evergold Corp. (TSX -V: EVER, WKN: A2PTHZ) (“Evergold” or the
“Company”) is pleased to announce that it has closed its previously announced (news, September 7, 2023) non-brokered
private placement financing for aggregate gross proceeds of $1,242,200 through the issuance of 12,078,334 flow-through
units (“FT Units”) at a price of $0.06 per FT Unit and 9,409,091 hard-dollar units of the Company (“HD Units”) at a price
of $0.055 per HD Unit (the “Offering”). It is expected that the majority of the gross proceeds from the sale of the FT Units
will be used to support first-ever drilling of the newly optioned DEM property in central B.C. (news, August 2, 2023), which
hosts a large-scale copper-gold-silver porphyry target defined by multiple supporting data sets. Further details on the DEM
prospect may be found on the Company’s website at www.evergoldcorp.ca/projects/dem-property/ and in a NI 43 -101
technical report entitled “Technical Report on the DEM Property” dated August 3 0, 2023, posted there on and on the
Company’s issuer profile at SEDAR+.
Each FT Unit is comprised of one (1) common share of the Company qualifying as a “flow-through share” as defined in
subsection 66(15) of the Income Tax Act (Canada) (a “FT Share”), and one (1) common share purchase warrant (each
whole warrant, a “ Warrant”). Each Warrant entitles the holder thereof to acquire one additional common share of the
Company (a “Warrant Share”) at an exercise price of $0.08 per Warrant Share for a period of twenty -four (24) months
following the closing of the Offering. Each HD Unit is comprised of one (1) common share of the Company (a “Common
Share”), and one (1) Warrant.
The gross proceeds from the issuance of the FT Units will be used for “Canadian exploration expenses” on the Company’s
mineral properties and will qualify either as "flow-through critical mineral mining expenditures" or "flow-through mining
expenditures" (the "Qualifying Expenditures"), each as defined in subsection 127(9) of the Income Tax Act (Canada).
The Company intends to renounce the Qualifying Expenditures to subscribers of FT Units for the fiscal year ended
December 31, 2023 and to incur the Qualifying Expenditures on or before December 31, 2024. The net proceeds from the
issuance of HD Units will be used for both exploration and general working capital purposes.
Certain insiders of the Company, (collectively, the “Insiders”) subscribed to the Offering for an aggregate of 1,409,091 HD
Units and 458,334 FT Units. This issuance of HD Units and FT Units to the Insiders constitutes a “related party transaction”
as such term is defined under Multilateral Instrument 61 -101 – Protection of Minority Security Holders in Special
Transactions (“MI 61-101”). The Company is relying on an exemption from the formal valuation and minority shareholder
approval requirements provided under MI 61 -101 pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61 -101, on the
basis that the participation in the Offering by Insider s does not exceed 25% of the fair market value of the Company’s
market capitalization.
In connection with the Offering and as previously announced, the Company entered into a fiscal advisory agreement with
Canaccord Genuity Corp. (“Canaccord”), pursuant to which the Company has compensated Canaccord in the amount of
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$25,000, payable in hard-dollar units of the Company (the “Compensation Units”) issued at a deemed price C$0.055 per
Compensation Unit. An aggregate of 454,545 Compensation Units were issued to Canaccord, with each Compensation
Unit being comprised of one Common Share and one Warrant. In addition, the Company paid commissions to certain
finders of an aggregate of $42,990 in cash and 725,000 finders warrants (the “Finder’s Warrants”). Each Finder Warrant
entitles the holder thereof to purchase one (1) Common Share (a “Finder Warrant Share”) at an exercise price of $0.055
per Finder Warrant Share for a period of twenty-four (24) months from the closing of the Offering.
The closing of the Offering is subject to certain conditions, including but not limited to the final acceptance of the TSX
Venture Exchange. All securities issued in connection with the Offering are subject to a hold period of four months and
one day from the Closing Date, in accordance with applicable Canadian securities laws.
The Option Agreement to acquire the DEM Property remains subject to receipt of all necessary regulatory and other
approvals, including the final approval of the TSXV and the approval of disinterested shareholders of the Company, a vote
in regards to which is scheduled for October 10, 2023. In the event such approvals are not obtained, the Company expects
to re-direct the gross proceeds of the FT Units to incur Qualifying Expenditures on its other mineral properties.
Further to the Company’s news release dated August 2, 2023, the Company carried out a supplementary analysis with
respect to whether or not the transaction is exempt from the formal valuation and shareholder approval requirements of
MI 61-101. The Company initially deemed the Option Agreement exempt from the valuation and minority shareholder
approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 on the basis of the fair market
value of the acquisition of t he Option not exceeding 25% of the market capitalization of the Company, as determined in
accordance with MI 61-101. Upon further analysis, the Company has deemed the fair market value of the acquisition to
exceed 25% of the market capitalization of the Company. Accordingly, the Company will be relying on an exemption from
the valuation requirements of MI 61-101 by virtue of the exemption contained in section 5.5(b) of MI 61-101 as the Common
Shares are not listed on a specified market . The Company is not exempt from the minority shareholder approval
requirement under section 5.6 of MI 61 -101; however it will be seeking disinterested shareholder approval at a special
meeting of shareholders to be held on October 10, 2023, which shall satisfy the minority shareholder approval
requirements of MI 61-101. Please see the Company’s management information circular dated August 25, 2023 for further
details.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Evergold
Evergold Corp. is a TSX-V listed mineral exploration company with projects in B.C. and Nevada. The Evergold team has
a track record of success in the junior mining space, most recently the establishment of GT Gold Corp. in 2016 and the
discovery of the Saddle South epithermal vein and Saddle North porphyry c opper-gold deposits near Iskut B.C., sold to
Newmont in 2021 for a fully diluted value of $456 million, representing a 1,136% (12.4 X) return on exploration outlays of
$36.9 million.
For additional information, please contact:
Kevin M. Keough
President and CEO
Tel: (613) 622-1916
www.evergoldcorp.ca
Neither the 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 news release.
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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 pro vides 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 f rom those expressed or implied by
such forward-looking information. Factors that could cause actual results to differ materially from such forward -looking
information include, but are not limited to, the failure to obtain regulatory approvals for the Offering, the failure to use the
proceeds of the Offering as outlined herein, failure to identify mineral resources, 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, 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.