Vancouver B.C. - June 8, 2017. Evrim Resources Corp. (TSX.V:EVM) (“Evrim” or the “Company”) is pleased to announce that it has signed an option agreement (the “Agreement”) with Harvest Gold Corporation (“Harvest”) in respect of the high grade gold-silver Cerro Cascaron project (“Project”) in Chihuahua, Mexico. Harvest will have the right to earn up to an 80% interest in the Project by incurring certain exploration expenditures, making cash and share payments and delivering a 43-101 compliant feasibility study.
“We are very excited to partner with Harvest Gold on the Cerro Cascaron project”, commented Paddy Nicol, Evrim’s President and CEO. “Harvest’s management team has a demonstrated history of successful project development and we are confident in their commitment to the Project. Cerro Cascaron, with its district scale high grade gold and silver systems, is the type of project that an exploration company such as Harvest can take an aggressive approach to explore and develop quickly. Exploration at the Project is expected to commence shortly with the aim to identify several targets for drill testing later in 2017.”
About the Cerro Cascaron Option Agreement
Under the terms of the Agreement, which is subject to TSX Venture Exchange (“TSX.V”) approval, Harvest can earn an initial 70% interest (the “Initial Interest”) in the Cerro Cascaron project by incurring $6 million in exploration expenditures, making $900,000 in cash payments and issuing 2,000,000 shares to Evrim over a four year period. Evrim will be the operator during the Initial Interest period.
|Time||Exploration (CDN)||Cash (CDN)||Shares|
|End of Y1||$1.0 million||$200,000||-|
|End of Y2||$1.0 million||$100,000||-|
|End of Y3||$2.0 million||$100,000||-|
|End of Y4||$2.0 million||$500,000||1,000,000**|
* subject to a 12 month hold period and Harvest retains the right to repurchase the shares at a greater of the 20 day volume weighted average price or the issue price at the end of year one.
** Harvest will issue the greater of 1,000,000 shares or 1% of the issued and outstanding shares of Harvest.
Once Harvest has earned its Initial Interest it will have a 90 day period during which it can elect to earn an additional 10% interest (“Additional Interest”) for an aggregate 80% interest in the Project. To earn the additional 10% interest Harvest has to make a cash payment of $200,000 (or 200,000 shares at Evrim’s election) and fund a 43-101 compliant feasibility study (“Feasibility Study”) over a five year period. Minimum annual exploration expenditures of $2.0 million are required during this period and a $200,000 cash payment has to be made to Evrim if the minimum expenditures are not met.
During the Initial Interest period, Harvest can defer exploration expenditures at the end of the first, second or third anniversary for 12 months by making quarterly cash payments of $25,000 to Evrim and maintaining all other cash payments and claim maintenance costs.
If Evrim’s interest in Cerro Cascaron is diluted to 10% or less, its interest will convert into a 2% net smelter royalty (“NSR”). Evrim will retain the right to purchase half of a pre-existing 2% NSR from a property vendor for US$2.5 million. Harvest will be responsible for all other claim maintenance and underlying vendor costs.
About the Cerro Cascaron Project
The Cerro Cascaron project is a 69 square kilometre, low to intermediate sulphidation epithermal gold target located in the Sierra Madre Occidental of Chihuahua, Mexico, approximately 55 kilometres southeast of Goldcorp Inc.’s past-producing El Sauzal gold mine. The project hosts significant veining with high grade gold and silver systems spread over large areas on the property.
Channel sampling and mapping undertaken by Evrim in 2016 have extended the area of the high grade gold veins at the Cerro Cascaron vein field to 18 square kilometres while identifying several drill targets for follow-up. For example, the Serpiente Dorada vein has grab samples of 1,670 grams per tonne (“g/t”) gold and 1,490 g/t silver, and the San Pedro vein has channel samples of 2.6 metres grading 6.05 g/t gold and 28.3 g/t silver, including 0.8 metres grading 19.0 g/t gold and 72.6 g/t silver. Vein textures indicate that the strike extensions of the veins at Serpiente Dorada, Dolores, San Pedro and Carabina are above the boiling zones where high grade samples with visible gold have been collected and represent excellent targets.
Five kilometres to the west, the La Cascarita prospect contains silver dominant veins and breccias up to three metres wide. Five of forty grab samples are greater than 200 g/t silver and range from 0.46 to a maximum of 982 g/t silver. The scale of veining and range of mineralization style on the project from low sulphidation bonanza gold, intermediate sulphidation high silver and silver rich breccia bodies, demonstrate the district scale of the project with large areas of the property yet to be explored.
Qualified Person Statement
Evrim’s disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo. Vice President, Technical Services for the Company. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. The Company 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.