Everton Signs Letter of Intent To Buy Remaining Interest in Ampliación Pueblo Viejo and Two Other Dominican Republic Properties from Brigus Gold
OTTAWA, ONTARIO -- (Marketwire) -- 05/25/11 -- Everton Resources Inc. ('Everton') (TSX VENTURE: EVR)(Frankfurt: ERV) announces that it has signed a letter of intent with Brigus Gold Corp. ('Brigus') whereby Everton will acquire Brigus' remaining interest in the Ampliacion Pueblo Viejo II ('APV'), Ponton and La Cueva concessions in the Dominican Republic ('the Concessions').
Under the terms of the letter of intent, Everton must complete a minimum CAD$5 million financing, pay Brigus CAD$1 million cash and issue Brigus 15 million common shares in Everton. 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.
In addition, Everton is required to incur a minimum CAD$5 million in exploration expenditures on the Concessions over the next two years, $4 million on APV and $500,000 on each of Ponton and La Cueva. Upon completion of a National Instrument 43-101 compliant measured and indicated resource estimate on the Concessions of a minimum 1 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), Everton will pay Brigus an additional Cdn$5 million or issue 5 million common shares, whichever has the greater value.
'The signing of the letter of intent represents another step in Everton's strategy to focus on its Dominican Republic properties, and we believe acquiring a 100% ownership interest in APV, Ponton and La Cueva will add significant future shareholder value,' said Andre Audet, President and CEO of Everton.'
The closing of the transaction with Everton is subject to Everton completing its planned financing. The transaction and financing are subject to receiving regulatory approval.
About Everton
Everton is partnered with Brigus on actively exploring in the Dominican Republic adjacent to the US$3 billion Pueblo Viejo project, currently being developed by the world's largest gold mining company, Barrick Gold Corporation (60%) (NYSE: ABX)(TSX: ABX) 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
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 in the Township of Black River-Matheson, Ontario, Canada. Brigus is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus Gold holds a 100 percent interest in the Ixhuatan Project located in the state of Chiapas which is subject to a letter of intent with Cangold. In the Dominican Republic, Brigus has a joint venture with Everton covering three mineral exploration projects.
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 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.
Contacts:
Andre Audet
Chairman and CEO
613-241-2332
613-241-8632 (FAX)
andre@evertonresources.com
www.evertonresources.com