|Everton Resources Inc. |
TSX VENTURE : EVR
FRANKFURT : ERV
|Brigus Gold Corp. |
TSX : BRD
NYSE Amex : BRD
September 29, 2011 09:37 ET
OTTAWA, ONTARIO--(Marketwire - Sept. 29, 2011) - Everton Resources Inc. ("Everton") (TSX VENTURE:EVR)(FRANKFURT:ERV) and Brigus Gold Corp. ("Brigus") (TSX:BRD) (NYSE Amex:BRD) announce that they have agreed to revised terms whereby Everton has acquired the option to purchase Brigus' remaining 50% interest in the Ampliación Pueblo Viejo II ("APV"), Ponton and La Cueva concessions in the Dominican Republic ("the Concessions").
The binding agreement requires Everton to issue 15 million treasury common shares to Brigus to acquire the option. Pursuant to the option, Everton can acquire Brigus' remaining interest in the Concessions by paying Brigus CAD$500,000 cash and an additional CAD$500,000 in cash or common shares with a value of $500,000 by December 31, 2011.
Brigus will also receive a sliding scale net smelter return royalty on the Concessions equal to 1.0% when the price of gold is less than US$1,000 per ounce, 1.5% when the price of gold is between US$1,000 and US$1,400 per ounce, and 2% when the price of gold is above US$1,400 per ounce.
Everton will also issue Brigus a promissory note equal to the greater of CAD$5 million or 5,000,000 common shares of Everton. The promissory note will be subject to completion of a National Instrument 43-101 compliant measured and indicated resource estimate on the Concessions of a minimum one million ounces of gold equivalent ("AuEq") (at an average grade of 2.5 g/t AuEq or higher for APV and 1.5 g/t AuEq or higher for Ponton and La Cueva) or actual gold production from the Concessions plus a National Instrument 43-101 compliant measured and indicated resource estimate on the Concessions (at an average grade of 2.5 g/t AuEq or higher for APV and 1.5 g/t AuEq or higher for Ponton and La Cueva) exceeding 1 million ounces of gold equivalent ("AuEq").
Everton Chairman and CEO Andre Audet commented on the change from the previous agreement, "The elimination of requirements for a private placement and a commitment to spend $5 million in exploration drilling over the next two years will provide Everton with some flexibility in our drilling agenda."
"Brigus has been a great partner to us, and I'm pleased they have agreed to the revised terms," Mr. Audet said. "It frees up an additional $500,000 cash which, in our case at APV-South is the equivalent of five or six new deep drill holes."
About Everton Resources Inc.
Everton is partnered with Brigus on actively exploring in the Dominican Republic adjacent to the US$3.5 billion Pueblo Viejo project, currently being developed by the world's largest gold mining company, Barrick Gold Corporation (60%) in partnership with Goldcorp Inc. (40%) ("Goldcorp") (NYSE:GG)(TSX:G). Planned divestiture of its 100%-owned subsidiary Hays Lake Gold containing the Shoal Lake Gold Project in Kenora, Ontario is expected to provide internal funding to advance the Ampliacion Pueblo Viejo project. Everton also holds an interest in the Opinaca region of James Bay, Quebec where the Company has partnered with Aurizon Mines Ltd. who is advancing Everton's interest by funding 100% of all exploration work on one of the largest land packages adjacent to Goldcorp's Eleonore gold deposit.
About Brigus Gold Corp.
Brigus is a growing gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates the wholly owned Black Fox Mine and Mill in the Timmins gold district of Ontario, Canada. The Black Fox Complex encompasses the Black Fox Mine and adjoining properties, all in the Township of Black River - Matheson, Ontario, Canada. Brigus is also advancing its Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus has a letter of intent to sell 75% of its Ixhuatan silver-gold projected located in the state of Chiapas. In the Dominican Republic, Brigus' remaining interests in three mineral exploration projects are subject to a purchase option agreement with Everton.
This news release contains certain forward-looking statements that involve risks and uncertainties, such as statements of Everton's plans, objectives, strategies, expectations and intentions. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to Everton, or its management, are intended to identify such forward-looking statements. Many factors could cause Everton's actual results, performance or achievements to be materially different any future results, performance or achievements that may be expressed or implied by such forward-looking statements. The forward-looking statements included in this press release represent Everton's views as of the date of the release. While Everton anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information. All subsequent written and oral forward-looking statements attributable to Everton or persons acting on its behalf are expressly qualified in their entirety by this notice.
Neither the TSX, TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chairman and CEO
Jennifer Nicholson, CA
Vice President Investor Relations
Notes: Brigus Gold is a top ten pick of the Motley Fool.