B.C.-focused Evergold closes $3.45 million IPO

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Evergold Corp. [EVER-TSXV], a British Columbia-focused exploration company, said Friday October 4 that it has completed an initial public offering that raised $3.45 million from its IPO of units priced at 20 cents each.

Proceeds of the offering will be used to fund Phase 1 exploration drilling at the company’s flagship Snoball and Golden Lion properties located in B.C.’s Golden Triangle and Toodoggone regions respectively.

“We are really pleased to have accomplished this over-subscribed $3.45 million initial public offering and attendant listing on the TSX Venture Exchange, and to be one of the very few mineral exploration companies to have recently successfully done so,” said Evergold President and CEO Kevin Keough.

The IPO consisted of 17.2 million units, including 2.24 million that were issued on the full exercise of an over-allotment option granted to the agent Leede Jones Gable Inc. for the offering. Each unit consists of one common share of the company and one half of a common share purchase warrant.

Each whole warrant entitles the holder to purchase one common share for a period of 24 months from the date of closing at 25 cents a share.

On Friday, the shares closed at 21 cents after posting a gain of 5% or $0.01 on volume of 234,500.

Keough said GT Gold Corp. [GTT-TSXV] exploration vice-president Charles Greig has shown considerable confidence in Evergold’s management team by agreeing to vend four properties into the company in exchange for shares and a small royalty. One of the most experienced geologists in B.C., Greig has previously worked on projects such as Brucejack, Red Mountain and Silback Premier.

The Snoball and Golden Lion properties are subject to a 0.5% net smelter return royalty (NSR) on any minerals that are extracted from the properties The royalty is payable to C.J. Greig Holdings (a company owned by Charles Greig), with no buyout option.

Evergold said it intends to be the first to drill on the Snoball property, which covers 3,545 hectares in the Golden Triangle. It is going ahead with that plan in the belief that it has located the source of a large, strong gold-silver anomaly up-slope from previous work.

IPO proceeds are earmarked for the 5,099-hectare Golden Lion property, which is located in Stikine terrane rocks at the north end of the Toodoggone region where multiple strong gold-silver +/- copper targets have been outlined.

The company also holds 100% of two other properties. They are the drill-ready Holy Cross property in central B.C., west of Prince George, and the Spanish Lake property in the Cariboo region of south-central B.C., east of Williams Lake.


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