Evergold closes $350,000 private placement

Executive Summary

• Evergold Corp. closed a non-brokered private placement of unsecured convertible debentures for gross proceeds of $350,000, with the entire amount subscribed by C.J. (Charlie) Greig, the company's Chief Exploration Officer and Director.
• The financing includes detachable warrants and a conversion feature, constituting a related party transaction exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.
• Concurrently, the company announced the commencement of drilling at its DEM Mountain property in British Columbia, targeting extensions of previous high-grade intersections.

Key Details

• Financing Structure:
  • Instrument: Unsecured convertible debenture.
  • Gross Proceeds: $350,000.
  • Investor: C.J. Greig Holdings Ltd. (wholly owned by C.J. "Charlie" Greig, Director and Chief Exploration Officer).
  • Interest Rate: 7.5% per annum.
  • Maturity Date: November 6, 2027.
  • Conversion Price: 23 cents per debenture share.
  • Conversion Ratio: Principal convertible into up to 1,521,739 common shares (assuming full conversion).
  • Accrued Interest Conversion: Accrued interest may be converted into common shares at the investor's option at the market price on the date of conversion.
  • Warrants: 1.05 million detachable common share purchase warrants issued (3,000 warrants per $1,000 of principal).
  • Warrant Terms: Exercisable into one share at a price of 23 cents per warrant for two years from the date of issuance.
  • Hold Period: Four months and one day from the date of issuance for all securities.
• Regulatory Context:
  • Classified as a related party transaction under Multilateral Instrument 61-101.
  • Exempt from formal valuation and minority shareholder approval requirements under Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the issuance does not exceed 25% of the company's market capitalization.
• Operations Update (DEM Property):
  • Location: DEM Mountain zone, near Fort St. James, British Columbia.
  • Activity: Drilling commenced on a core hole below encouraging intersections found in 2023 (hole DEM23-03) and 2024 (hole DEM24-05).
  • Target: Precious and critical metals at shallower levels.
  • Duration: Drilling expected to take one to ten days.

Notable Quotes

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