Evergold arranges $350,000 debenture financing

Executive Summary

• Evergold Corp. announced a $350,000 non-brokered convertible debenture private placement with C.J. Greig Holdings Ltd., a company wholly owned by C.J. Greig, the company's director and chief exploration officer.
• The financing is specifically earmarked to fund immediate drilling at the DEM Gold Prospect in British Columbia, targeting the DEM Mountain zone to test for continuity and grade enhancement at depth.
• The debenture carries a 7.5% interest rate, matures on Dec. 31, 2026, and includes conversion rights into common shares and detachable warrants.

Key Details

• Financing Structure:
  • Instrument: Unsecured convertible debenture.
  • Investor: C.J. Greig Holdings Ltd. (wholly owned by C.J. Greig, Director and Chief Exploration Officer).
  • Principal Amount: Up to $350,000.
  • Interest Rate: 7.5% per annum.
  • Maturity Date: December 31, 2026.
  • Use of Proceeds: Immediate completion of a drill hole below encouraging intersections in the DEM Mountain zone prior to winter.
• Conversion and Warrant Terms:
  • Conversion Price: 23 cents per debenture share.
  • Maximum Shares: Up to 1,521,739 common shares (assuming full conversion of principal).
  • Accrued Interest Conversion: Investor may convert accrued interest into common shares at the market price on the date of conversion.
  • Warrants: 3,000 detachable common share purchase warrants for each $1,000 of principal (totaling 1.05 million warrants).
  • Warrant Exercise Price: 23 cents per share.
  • Warrant Term: Two years from the date of issuance.
  • Hold Period: Four months and one day from the date of issuance.
• Regulatory and Transaction Details:
  • Closing Conditions: Subject to receipt of all necessary regulatory approvals, including TSX-V approval.
  • Related Party Transaction: Classified as a related party transaction under Multilateral Instrument 61-101; exempt from formal valuation and minority shareholder approval requirements as the issuance does not exceed 25% of the company's market capitalization.
• Drilling Plan (DEM25-06):
  • Location: Same pad as hole DEM23-03, targeting approximately 200 meters vertically below the 2023 intersection.
  • Technical Specs: Steeper inclination (minus 70 degrees) compared to previous holes.
  • Projected Length: Approximately 600 meters.
  • Objectives: Demonstrate system continuity to depth and determine orientation, widths, and grade of mineralized structures.
• Historical Context (2023-2024 Drilling):
  • Hole DEM23-03: Intersected 48.2 meters grading 0.58 g/t Au (including 11.98 g/t Au over 1.5 meters).
  • Hole DEM24-05: Targeted DEM23-03; returned encouraging results including strongly elevated antimony over broad widths.
  • Geological Interpretation: Near-vertical, structurally focused epithermal system with potential for better grades over strong widths at depth.

Notable Quotes

• "We thank Charlie for this vote of confidence in the company's prospects... Our plan is to test this model with the pending limited program of drilling, which will get under way within approximately one week." — Kevin Keough, President and CEO.