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Evolving Gold enters joint venture deal with Agnico-Eagle for Rattlesnake Hills

Published: 19:46 09 May 2011 BST

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Canadian explorer Evolving Gold (TSE:EVG) said Monday it has signed a joint venture deal for its Rattlesnake Hills gold project in Wyoming with Agnico-Eagle Mines (TSE:AEM).

Under the terms of the agreement, Agnico-Eagle can earn up to 70% of the property by funding the project through to the completion of a feasibility study.

In other words, Agnico-Eagle is required to pay Evolving Gold $12 million, to purchase $23 million in Evolving Gold shares and to spend a minium of $41 million on exploration and development work, all over a period of seven years.

"The partnership with Agnico-Eagle will provide the Rattlesnake Hills project with the financial strength required for sustained exploration and development programs," said Evolving Gold CEO Bill Gee.

The company said the deal provides $76 million in benefits, allowing it to also retain exposure to the property's exploration potential.

"This agreement allows the company to focus on its core strength, the discovery of major new gold deposits.

With this agreement now in place, Evolving Gold plans to focus its assets and expertise on the exceptional opportunity for a major gold discovery on the prolific Carlin Trend and on our other properties in Nevada," added Gee.

A binding joint venture agreement is expected to be completed by June 1, with a drill program beginning shortly after.

Exploration work this year will be focused on drill extensions of the two main gold zones, and on defining additional targets on the Rattlesnake property.

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