VANCOUVER, BC / ACCESSWIRE / July 9, 2019 / Evrim Resources Corp. (TSX.V: EVM) (“Evrim” or the “Company”) is pleased to announce it has signed an option agreement (the “Agreement”) with Golden Ridge Resources Ltd. (GLDN) (“Golden Ridge”) on the Ball Creek property in northwestern British Columbia. Golden Ridge will have the exclusive right to earn an 80% interest in the Ball Creek project by issuing 1,000,000 Golden Ridge shares, making cash or cash-equivalent share payments of up to $300,000, additional cash payments of up to $4.25 million, making a production decision supported by a compliant feasibility study on the Ball Creek property, and providing evidence of project financing that is mutually acceptable to both parties in accordance with the feasibility study.
“Golden Ridge has embarked on a 4,000 metre drill campaign on their Hank property, which contains the Williams zone discovery,” commented Evrim’s CEO Paddy Nicol. “The Williams zone lies 200 metres south of the Ball Creek property and remains open to the north and at depth. Part of Golden Ridge’s drill plan includes testing these extension targets that trend towards the Ball Creek property.”
Evrim acknowledges that Ball Creek is situated in the traditional territory of the Tahltan Nation and is committed to developing a positive and mutually beneficial relationship based on respect and transparency.
About the Ball Creek Option Agreement
Under the terms of the Agreement, Golden Ridge can earn an 80% interest by issuing 1,000,000 shares to the Company upon TSX.V approval, and make the following cash and/or cash-equivalent share payments to the Company:*
|
Shares |
Cash |
|
|
Upon TSX.V approval |
1,000,000 |
|
|
Annually from Years 1-6 |
$50,000 |
|
|
Annually from Years 7-10 |
$125,000 |
|
|
Annually from Years 11-15 |
$250,000 |
Golden Ridge can elect to extend the Agreement during the option period by an additional five years by making cash payments of $500,000 per year. Once Golden Ridge has completed a 43-101 compliant feasibility study, provided evidence of project financing that is mutually acceptable to Evrim and Golden Ridge and made a production decision, it will have exercised its 80% interest in Ball Creek. Golden Ridge will then make cash payments of $250,000 per year until a deposit is placed into commercial production. Evrim will retain a carried 20% interest under a joint venture structure. Evrim also retains the right to purchase 1% of a pre-existing 2% net smelter royalty (“NSR”) for $1.0 million.
*Certain cash and share payments will be shared with an underlying vendor as to 40% of payments received in year one, 30% in year two, 20% in year three and 10% in year four, in accordance with the terms of the original agreement pursuant to which Evrim acquired the Ball Creek property in 2015.
About the Ball Creek Project
Ball Creek is an attractive 524 square kilometre copper-gold porphyry and epithermal gold-silver project located in the centre of the Golden Triangle, approximately 50 kilometres south of GT Gold’s Saddle North discovery and 70 kilometres east of Teck and Newmont-Goldcorp’s Galore Creek. The project contains four separate porphyry systems distributed across the property and in close proximity to the Triassic/Jurassic unconformity, a similar setting to major deposits including Red Chris, KSM, Spectrum/GJ, and Snip. Work with Antofagasta in 2017 and 2018 focused on copper targets in the eastern portion of the property including the Ball Creek Porphyry, Quash, Rainbow North and South More areas. Unexplored copper targets outside of the Antofagasta program area include Mess Creek, North More, and near Schaft Creek. None of the targets were drill tested as part of this program.
The Quash zone is located approximately 200 metres from Golden Ridge’s Williams porphyry discovery on the Hank property, where drill hole HNK-18-013 intersected 319 metres grading 0.42 grams per tonne (“g/t”) gold and 0.34% copper.1 An Induced Polarization (IP) survey completed in 2018 at the Quash zone is marked by distal porphyry alteration and geochemistry, and suggests the Williams porphyry may cross the property boundary dipping steeply to the northwest.
Fig. 1 - Ball Creek Project highlighting Golden Ridge’s Williams Occurrence
Fig. 2 - Chargeability Model 400 metre depth slice
The project benefits from local infrastructure with Highway 37 and the 287 kV Northwest Transmission line located seven kilometres east of the property boundary.
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 is a precious and base metals project generator, with early stage exploration projects and a database covering substantial areas of Mexico, western Canada and portions of southwestern United States. We focus our expertise on identifying new early stage exploration targets which are later advanced through option and joint venture agreements with industry partners to create shareholder value and avoid stock dilution. 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.
Paddy Nicol
President & CEO
To find out more about Evrim Resources Corp., please contact Paddy Nicol, President and CEO or Liliana Wong, Investor Relations Manager at 778-929-3382.
Visit our website at www.evrimresources.com.
Footnote
- Please refer to the news release issued by Golden Ridge Resources Ltd. dated November 28, 2018. https://www.goldenridgeresources.com/news/index.php?content_id=103
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.
SOURCE: Evrim Resources Corp.