Everton Signs Option Agreement to Purchase Remaining Interest in Ampliacion Pueblo Viejo and Two Other Dominican Republic Pro...
September 29 2011 - 8:37AM
Marketwired Canada
Everton Resources Inc. ("Everton") (TSX VENTURE:EVR)(FRANKFURT:ERV) and Brigus
Gold Corp. ("Brigus") (TSX:BRD) (NYSE Amex:BRD) announce that they have agreed
to revised terms whereby Everton has acquired the option to purchase Brigus'
remaining 50% interest in the Ampliacion Pueblo Viejo II ("APV"), Ponton and La
Cueva concessions in the Dominican Republic ("the Concessions").
The binding agreement requires Everton to issue 15 million treasury common
shares to Brigus to acquire the option. Pursuant to the option, Everton can
acquire Brigus' remaining interest in the Concessions by paying Brigus
CAD$500,000 cash and an additional CAD$500,000 in cash or common shares with a
value of $500,000 by December 31, 2011.
Brigus will also receive a sliding scale net smelter return royalty on the
Concessions equal to 1.0% when the price of gold is less than US$1,000 per
ounce, 1.5% when the price of gold is between US$1,000 and US$1,400 per ounce,
and 2% when the price of gold is above US$1,400 per ounce.
Everton will also issue Brigus a promissory note equal to the greater of CAD$5
million or 5,000,000 common shares of Everton. The promissory note will be
subject to completion of a National Instrument 43-101 compliant measured and
indicated resource estimate on the Concessions of a minimum one million ounces
of gold equivalent ("AuEq") (at an average grade of 2.5 g/t AuEq or higher for
APV and 1.5 g/t AuEq or higher for Ponton and La Cueva) or actual gold
production from the Concessions plus a National Instrument 43-101 compliant
measured and indicated resource estimate on the Concessions (at an average grade
of 2.5 g/t AuEq or higher for APV and 1.5 g/t AuEq or higher for Ponton and La
Cueva) exceeding 1 million ounces of gold equivalent ("AuEq").
Everton Chairman and CEO Andre Audet commented on the change from the previous
agreement, "The elimination of requirements for a private placement and a
commitment to spend $5 million in exploration drilling over the next two years
will provide Everton with some flexibility in our drilling agenda."
"Brigus has been a great partner to us, and I'm pleased they have agreed to the
revised terms," Mr. Audet said. "It frees up an additional $500,000 cash which,
in our case at APV-South is the equivalent of five or six new deep drill holes."
About Everton Resources Inc.
Everton is partnered with Brigus on actively exploring in the Dominican Republic
adjacent to the US$3.5 billion Pueblo Viejo project, currently being developed
by the world's largest gold mining company, Barrick Gold Corporation (60%) in
partnership with Goldcorp Inc. (40%) ("Goldcorp") (NYSE:GG)(TSX:G). Planned
divestiture of its 100%-owned subsidiary Hays Lake Gold containing the Shoal
Lake Gold Project in Kenora, Ontario is expected to provide internal funding to
advance the Ampliacion Pueblo Viejo project. Everton also holds an interest in
the Opinaca region of James Bay, Quebec where the Company has partnered with
Aurizon Mines Ltd. who is advancing Everton's interest by funding 100% of all
exploration work on one of the largest land packages adjacent to Goldcorp's
Eleonore gold deposit.
About Brigus Gold Corp.
Brigus is a growing gold producer committed to maximizing shareholder value
through a strategy of efficient production, targeted exploration and select
acquisitions. The Company operates the wholly owned Black Fox Mine and Mill in
the Timmins gold district of Ontario, Canada. The Black Fox Complex encompasses
the Black Fox Mine and adjoining properties, all in the Township of Black River
- Matheson, Ontario, Canada. Brigus is also advancing its Goldfields Project
located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona
gold deposits. In Mexico, Brigus has a letter of intent to sell 75% of its
Ixhuatan silver-gold projected located in the state of Chiapas. In the Dominican
Republic, Brigus' remaining interests in three mineral exploration projects are
subject to a purchase option agreement with Everton.
This news release contains certain forward-looking statements that involve risks
and uncertainties, such as statements of Everton's plans, objectives,
strategies, expectations and intentions. The words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions, as they relate to Everton, or its management, are intended
to identify such forward-looking statements. Many factors could cause Everton's
actual results, performance or achievements to be materially different any
future results, performance or achievements that may be expressed or implied by
such forward-looking statements. The forward-looking statements included in this
press release represent Everton's views as of the date of the release. While
Everton anticipates that subsequent events and developments may cause its views
to change, it specifically disclaims any obligation to update these
forward-looking statements, except in accordance with applicable securities
laws. Accordingly, readers are advised not to place undue reliance on
forward-looking information. All subsequent written and oral forward-looking
statements attributable to Everton or persons acting on its behalf are expressly
qualified in their entirety by this notice.
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