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Evergold Announces C$6,000,000 Bought Private Placement Financing with a Lead Order from Palisades Goldcorp

Evergold Corp. has accepted a bought-deal financing with Canaccord Genuity Corp. acting as underwriter, under which the underwriter has agreed to purchase on a bought-deal basis $2.7-million hard dollar units at a price of 20 cents per unit and $3.3-million flow-through dollar units at a price of 22 cents per unit, for total gross proceeds of $6-million, with a lead order from Palisades Goldcorp Ltd. Each flow-through unit shall consist of one common share of the company and one-half of one transferable common share purchase warrant, each of which will qualify as a flow-through share (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)). Each hard dollar unit shall consist of one common share of the company and one warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at an exercise price of 30 cents for a period of three years following the closing of the offering.

The underwriter will have an option to increase the size of the offering by up to $700,000, in flow-through units at the flow-through offering price, which underwriter option is exercisable, in whole or in part, up to 48 hours prior to the closing of the offering.

“We are delighted to have the strong support of Palisades, a new investor in our company, along with several of our long-standing funds including Sprott, Middlefield and Maple Leaf Funds,” said Kevin Keough, president and chief executive officer. “Their participation in this financing is appreciated, and a real vote of confidence in our prospects as we prepare to drill, in the approaching field season, our exciting Snoball and Golden Lion gold-silver projects, and advance our new high-grade Rockland, Nevada, gold-silver property.”

Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities. All securities issued and issuable pursuant to the offering will be subject to a hold period of four months and one day after the date of issuance. In connection with the offering, the company may pay commissions to eligible persons in accordance with the policies of the exchange.

Closing is expected on or about Feb. 23, 2021, and is subject to Toronto Stock Exchange and other necessary regulatory approvals.

The proceeds raised from the sale of flow-through shares will be used to incur Canadian exploration expenses that are flow-through mining expenditures on the company’s flagship properties in northern British Columbia, Canada. The proceeds raised from the sale of hard dollar units will be used for general working capital purposes and for exploration on the company’s B.C. and Nevada properties.

About Evergold Corp.

Evergold has been assembled by a team with a record of recent success in British Columbia, combining four 100-per-cent-owned properties in prime B.C. geological real estate from well-known geologist C.J. (Charlie) Greig, with the recently optioned Rockland property in Nevada, seasoned management, and a qualified board. The company’s flagship assets consist of the Snoball property, located in the heart of B.C.’s famed Golden Triangle, where drilling in 2020 achieved the discovery of a new high-grade intrusion-related gold-silver system on Pyramid Peak; the Golden Lion property, located at the north end of B.C.’s Toodoggone region, where drilling in 2020 confirmed the presence of a large-scale epithermal-style gold-silver zone at the GL1 Main prospect; and the formerly producing high-grade Rockland gold-silver property in Nevada. All three of these properties host discoveries and/or zones of precious metals that the company believes offer considerable near-term upside.

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