Everton Signs Option Agreement to Purchase Remaining Interest in Ampliacion Pueblo Viejo and Two Other Dominican Republic Pro...
September 29 2011 - 8:37AM
Marketwired
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.
Neither the TSX, 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.
Contacts: Andre Audet Chairman and CEO 613-241-2332 613-241-8632
(FAX) andre@evertonresources.com www.evertonresources.com Jennifer
Nicholson, CA Vice President Investor Relations 902-422-1421
jnicholson@brigusgold.com
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