Evergold Corp (TSX-V:EVER, OTC:EVGUF) has unveiled plans to raise $3.5 million to support drilling at the DEM gold-silver property in central British Columbia.
“The early drill results from DEM1 demand immediate follow-up, and we’re keen to get down to it this season,” chief executive Kevin Keough commented.
Funds will be raised through the issuance of a combination of hard-dollar units, comprising a common share and purchase warrant, alongside flow-through share units.
These will be priced at $0.045 and $0.050 respectively, with warrants including a $0.06 per share exercise price for a two-year period.
Evergold added the offering was expected to close on or about June 10, after which issued securities will be subject to a four-month hold period.
“The only way to add real value to a junior mineral exploration company is with the drill bit, achieving and developing discoveries of merit, which we believe DEM to be,” Keough said.
“It’s a capital-intensive process. That said, precious metal prices are very strong, and we retain 100% of the upside exposure to the DEM1 prospect.”
Survey results released last week showed an anomaly suggesting the presence of abundant sulphides, Evergold noted, with these following highly encouraging drilling earlier this year.