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TORONTO, Feb. 1, 2021 /CNW/ - Evergold Corp. ("Evergold" or the "Company") (TSXV: EVER) has accepted a bought deal financing with Canaccord Genuity Corp. acting as Underwriter (the "Underwriter"), under which the Underwriter has agreed to purchase on a bought deal basis $2,700,000 hard dollar units ("HD Units") at a price of $0.20 per Unit ("HD Offering Price") and $3,300,000 flow-through dollar units ("FT Units") at a price of $0.22 per Unit ("FT Offering Price"), for total gross proceeds of $6,000,000 ("Offering"), with a lead order from Palisades Goldcorp Ltd. Each FT Unit shall consist of one common share of the Company and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a "Warrant"), each of which will qualify as a "flow-through share" (within the meaning of subsection 66(15) of the Income Tax Act (Canada). Each HD Unit shall consist of one common share of the Company and one Warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a "Warrant Share") at an exercise price of C$0.30 for a period of 3 years following the closing of the Offering.
The Underwriter will have an option (the "Underwriter Option") to increase the size of the Offering by up to C$700,000, in FT Units at the FT Offering Price, which Underwriter Option is exercisable, in whole or in part, up to 48 hours prior to the closing of the Offering.
"We are delighted to have the strong support of Palisades, a new investor in our Company, along with several of our long-standing funds including Sprott, Middlefield and Maple Leaf Funds," said Kevin Keough, President & CEO. "Their participation in this financing is appreciated, and a real vote of confidence in our prospects as we prepare to drill, in the approaching field season, our exciting Snoball and Golden Lion gold-silver projects, and advance our new high-grade Rockland, Nevada gold-silver property."