Evergold has signed a definitive option agreement to acquire a full ownership interest in the Copper King inlier claim groups in British Columbia, Canada.
The acquisition, comprising four inlier claim groups encompassing an area of 173ha, is located within the northern half of the company’s Golden Lion property.
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Under the terms of the agreement, Evergold is required to consolidate its common shares at a ratio of ten pre-split shares to one post-split share.
The agreement also necessitates the gradual disbursement of 533,332 post-consolidation Evergold shares over two years.
Additionally, upon exercising the option, Evergold will grant a 2.5% net smelter returns (NSR) royalty to the optionors, with the possibility to buy back 1.5 percentage points for C$1.5m ($1.08m).
The consideration shares will be distributed in three stages, with the first issuance occurring one week after the consolidation’s effective date. The remaining shares will be issued on 2 July 2026, and 2 July 2027.
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By GlobalDataAll shares will be subject to a four-month holding period from the date of issuance.
The acquisition is subject to necessary regulatory approvals, including the TSXV approval. Additionally, for the consolidation to proceed, it must receive the approval of two-thirds of the company’s shareholders.
The Copper King property comprises the Goat, Chuck, Copper King, and Claw prospects.
Historical drilling at Claw indicated significant copper mineralisation, though no assays were conducted at the time.
Subsequent rock sampling in 1984 revealed high copper and silver mineralisation values in vein-fracture systems and disseminations in altered country rock.
It was recommended to defer further exploration until metal prices improved and no exploration work has been carried out since then.
