- Evergold (TSXV:EVER) has announced the completion of a non-brokered private placement for gross proceeds of approximately C$1.18 million.
- The company issued approximately 1.76 million flow-through shares at a price of 67 cents each
- The proceeds will be used to complete the drilling of high-priority targets at the company’s Snoball and Golden Lion properties
- With the financing now complete, Evergold has total estimated working capital of approximately $3.58 million
- Evergold (EVER) is currently down 5.48 per cent and is trading at $0.69 per share, with a market cap of $19.07 million
Evergold (TSXV:EVER) has completed a non-brokered private placement for gross proceeds of approximately C$1.18 million.
Under the placement, the company issued a total of 1,757,388 flow-through shares at a price of $0.67 each.
This price represents a premium over Evergold’s 30-day volume weighted average price, and a three-fold increase over its 20-cent initial public offering last year.
Certain funds managed by Sprott Asset Management LP, Middlefield Capital and Backer Wealth Management acted as the primary supporters of the financing.
Including the $547,923 that has so far been received from the exercise of 2,312,550 in-the-money warrants, and less pre-paid exploration expenses of $300,000, Evergold currently has a working capital value of $3.58 million.
As such, the company is fully-funded to undertake its first-ever drill program of high-priority targets at the Snoball and Golden Lion properties in northern British Columbia this season.
Drill pads are currently in place at Snoball, and drilling is expected to commence shortly after camp set-up on June 15 this year.
Field work at Golden Lion commenced on Wednesday this week, beginning with a survey of target areas and planned drill sites.
Camp move-in is anticipated to start on June 10, with geophysical, geochemical and geological programs shortly thereafter. A drill program is expected to commence at the site after July 20.
Kevin Keough, President and CEO of Evergold, noted that selectively placing a small offering with prominent funds and top fund managers was the most prudent course of action.
“In the event that we have discovery success with our Phase I drill programs this summer, the scale of our programs will expand and our needs for capital increase also.
“Given the ongoing economic disruption and market volatility, we can’t be entirely sure markets will be open to us at that time,” he said.
Kevin added that the company is very pleased to have received the support from Sprott, Middlefield and Backer Wealth, if for nothing else than the attention that their involvement will bring to Evergold.
Evergold (EVER) is down 5.48 per cent and is trading at $0.69 per share at 2:34pm EDT.