Evrim signs two-year gold exploration alliance
VANCOUVER, B.C., July 17, 2017 (GLOBE NEWSWIRE) -- Evrim Resources Corp. (TSX.V:EVM) ("Evrim" or the "Company") announced the signing of a two-year Exploration Alliance agreement (the "Alliance") with a wholly-owned subsidiary of Newmont Mining Corp. (“Newmont”). The Alliance will focus on generating Greenfield exploration opportunities in terranes favorable for world-class gold orebodies. Evrim and Newmont will co-fund the US$1,840,000 exploration program through a respective 30:70 funding allocation.
During the initial phase of the program, Evrim will undertake project identification, sampling and reconnaissance mapping with technical input from Newmont. The program will be further advanced by regional database compilation and target area geochemistry including Newmont's proprietary bulk leach extractable gold ("BLEG") analysis. The second year program will be dependent on results obtained during the initial phase along with follow-up mapping and sampling.
At the end of the two-year alliance period, Newmont will have the right to designate one or more projects for option by making certain cash payments to Evrim and solely fund exploration on the project(s) for up to 10 years, or until such time as it has defined a NI43-101 compliant pre-feasibility study on a minimum two million ounce gold resource. Newmont will then have increased their ownership to 80%. Evrim will be the operator for the initial US$5million in exploration expenditures.
Evrim and Newmont will then form a joint venture on a respective 20:80 basis whereby Evrim can maintain its equity interest in the project, or elect to have Newmont fund a positive NI43-101 compliant feasibility study and reduce Evrim’s equity interest to 15%. At any point after the Alliance period, Evrim can elect to switch its equity interest in any project to a 2% net smelter royalty (“NSR”) of which 0.5% NSR can be purchased for up to US$10 million.
"This marks the second exploration alliance Evrim has entered into with Newmont since the Trans-Mexican Volcanic Belt program in 2012”, commented Paddy Nicol, Evrim’s President and CEO. “Combining Evrim’s generative knowledge and capabilities with Newmont's exploration and BLEG expertise has proven effective and reliable in the assessment of large tracts of ground. Leveraging partner expertise and co-funded capital are the hallmarks of a successful value generator business and forging repeat business with major partners such as Newmont is an indication of Evrim’s execution in growing a high-quality property portfolio”.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable value generation model. The Company is well financed, has a diverse range of quality projects and a database in Mexico and portions of southwestern United States. The existing projects, and generation of quality exploration targets and ideas, are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim’s business plan also includes royalty creation utilizing the Company’s exploration expertise and existing projects.
On Behalf of the Board
EVRIM RESOURCES CORP.
President & CEO
To find out more about Evrim Resources Corp., please contact Paddy Nicol, President or Charles Funk, VP New Opportunities and Exploration at 604-248-8648, or visit www.evrimresources.com.
Forward Looking Information
This news release includes certain statements that may be deemed "forward looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the "Company“) expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.