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  • Evolving Gold Corp. (EVG) has signed a letter of intent to acquire all outstanding shares of Elephant Capital Corp.
  • Elephant Capital holds the rights to acquire all the outstanding share capital of Cibola Resources LLC.
  • Cibola Resources controls the rights to a lease of a property known as the Cebolleta Uranium Project comprising of 6,700 acres of mineral rights and 5,700 acres of surface rights
  • Elephant Capital is required to issue 11,308,250 common shares to enCore Energy Corp. to complete the acquisition of the Cebolleta project and 1.5 million common shares to finders for introducing the project to Elephant Capital
  • It is anticipated that Evolving Gold will change its name to “Future Fuel Corporation” and will reconstitute its board and management to consist of nominees of Elephant Capital
  • enCore Energy Corp. (EU) is down 1.163 per cent and is trading at $1.70 per share at 1:15 p.m. ET
  • Evolving Gold Corp. (EVG) is unchanged trading at $0.35 per share at 9:30 a.m. ET

Evolving Gold Corp. (EVG) has entered a letter of intent to acquire all outstanding share capital of Elephant Capital Corp.

Elephant Capital holds the rights to acquire all the outstanding share capital of Cibola Resources LLC., which controls the rights to a lease of a property comprising approximately 6,700 acres of mineral rights and 5,700 acres of surface rights located in New Mexico and is known as the Cebolleta Uranium Project.

In accordance with the terms of the Transaction, all existing common shares of Elephant Capital will be exchanged for an equivalent number of common shares of the Company.  

Elephant Capital currently has 43,733,000 common shares outstanding.  

The company is required to issue a further 11,308,250 common shares to enCore Energy Corp. (TSXV: EU) to complete the acquisition of the project and a further 1.5 million common shares to certain arms-length finders for introducing the project to Elephant Capital.

 No cash consideration is payable by Evolving Gold to Elephant Capital in connection with the completion of the Transaction.

Evolving Gold intends to undertake a non-brokered private placement of no less than 6 million subscription receipts at a price of $0.50 per receipt to raise approximately $3 million.

Each subscription receipt will automatically convert into one common share of Evolving Gold.

All securities are subject to a four-month hold period.

No finders’ fees or commissions are payable in the transaction, although finders’ fees may be paid in connection with the private placement.

It is anticipated that Evolving Gold will change its name to “Future Fuel Corporation” and will reconstitute its board and management to consist of nominees of Elephant Capital.

enCore Energy Corp. (EU) is down 1.163 per cent and is trading at $1.70 per share at 1:15 p.m. ET.

Evolving Gold Corp. (EVG) is unchanged trading at $0.35 per share at 9:30 a.m. ET.

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