Evergold Corp (TSX-V:EVER, OTC:EVGUF) said it has raised C$1.07 million via the first tranche of a non-brokered private placement financing.
The company told investors it may or may not raise additional capital in a second tranche on or before July 6 for what it said last month could be a $3.5 million fundraise.
As previously notified, Evergold said that the majority of the net cash proceeds will be used for follow-up drilling late this summer and fall of the large-scale DEM1 porphyry prospect in central BC.
This location is where a small, first-ever three-hole reconnaissance drill program carried out last October-November delivered broad intercepts of low-grade gold and silver from surface and local high grades of an impressive spectrum of sulphides and high-value elements, including precious and strategic metals.
Results from a geophysical survey completed in May were encouraging, revealing a large target, suggestive of the presence of abundant sulphides.
“We’re pleased to have secured the essential funding required for the crucial follow-up drill holes at DEM1, as the May geophysical results suggest that the two widely spaced drill pads for last fall’s program were set up immediately lateral to – and the 3 holes drilled from those pads were literally scratching the edges of - where we really need to be,” said president and CEO Kevin Keough.
“As such, the next few holes may really open the DEM1 prospect up. We’ll also be doing preliminary reconnaissance sampling of the newly identified DEM2 prospect to the southeast of DEM1, where historical lake sediment sampling returned high values of copper, molybdenum and cobalt.”