Evrim Resources Corp. is pleased to announce it has arranged a strategic investment with Newmont Canada Corporation, a wholly owned subsidiary of Newmont Mining Corporation. Newmont has agreed to purchase 4,848,401 shares of the Company at a price of $1.50 per share for gross proceeds of $7,272,601.50. Proceeds from the Private Placement will provide funding for the Cuale high sulphidation epithermal gold project in Jalisco, Mexico and for general corporate purposes. The Private Placement is subject to regulatory approval of the TSX Venture Exchange.
“The investment by Newmont is a strong endorsement for the potential of the Cuale gold project,” commented Evrim’s CEO Paddy Nicol. “Evrim and Newmont have established a strong exploration relationship for several years undertaking targeted generative exploration in two areas of North America, and this investment is a natural evolution of that relationship. We are pleased to once again utilize Newmont’s technical knowledge and expertise in high sulphidation gold systems to advance Cuale.”
Evrim and Newmont have entered into an investment agreement (the “Agreement”) pursuant to which Newmont will complete the Private Placement and will have certain investment rights for a period ending on the earlier of the fifth anniversary from the date of closing or the date on which Evrim enters into an agreement to divest all or part of its interest in the Cuale project to Newmont or third parties, including the following:
Newmont and Evrim have also agreed to a standstill clause whereby Newmont will be restricted from acquiring Evrim shares until February 28, 2020, subject to acceleration in the event Evrim enters into a transaction with respect to the Cuale project prior to that date.
Cuale Exploration Update
Evrim’s Phase 3 exploration program is continuing ahead of a planned 3,000 metre drill program. Trenching, CSAMT geophysics, detailed mapping and rock-chip sampling are nearing completion and a broad soil geochemical survey was completed earlier in the program. Results from these programs are expected throughout September.
Evrim also completed a five year exploration agreement with the local surface rights owners, the Cuale Ejido, to secure ongoing access to the project.
Permit applications for drilling have been submitted with an expected start to drilling in mid-October. Evrim had applied for an expedited permit, however the Secretariat of Environment and Natural Resources requested an environmental assessment report. The report has been completed and was submitted to SEMARNAT in early August.
Qualified Person Statement
Evrim’s disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., Vice President of Technical Services. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. The Company is well financed, has a diverse range of quality projects and a database covering substantial areas of Mexico and portions of southwestern United States. The Company’s projects are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim’s business plan also includes royalty creation utilizing the Company’s exploration expertise and existing projects.
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