Everton Amends Wildcat Option Agreement with Hecla Mining Receives $700,000 Option Payment
March 17, 2014 (Source: Marketwired) — Everton Resources Inc. (“Everton” or the “Company“)(TSX VENTURE:EVR)(FRANKFURT:ERV) is pleased to announce that the Company has amended the Wildcat option agreement with Hecla Quebec Inc., a wholly owned subsidiary of Hecla Mining Company (collectively “Hecla“).
The Wildcat option agreement was amended to defer the timing and the amount of exploration commitments required by Hecla to earn a 50% interest in the Wildcat properties. Under the original agreement, Hecla had to incur $1,470,000 of exploration expenditures by November 2015. Under the amendment, Hecla will have to incur $2,780,000 of exploration expenses by November 2017. Of this revised amount, Everton will be required to incur $1,000,000 by December 31, 2014, which will be deemed to have been incurred by Hecla. Everton will fund this amount from its recent $1,000,000 flow-through financing (see news release March 7, 2014).
In consideration for Everton agreeing to incur $1,000,000 of exploration related expenditures during 2014, Hecla has made a one-time option payment to Everton of $700,000.
The second option to allow Hecla to increase its interest from 50% to 65% was also amended to decrease the exploration expenditure requirement from $3,000,000 to $2,500,000.
Hecla plans to drill approximately 2,900 metres, split between two targets previously defined by till sampling and prospecting. In both cases, rock characteristics observed in the field show similarities with the Goldcorp’s Eleonore Mine. The Wildcat 1 and Wildcat 4 targets are located 20 km west and 40 km south-east of Eleonore respectively, along the same regional gold bearing structure. During this upcoming summer, approximately $500,000 will be spent on till sampling and prospecting to follow up on prospective areas targeted with gold in till anomalies. The sampling program is designed to progress the merit of these targets to the point they require legitimate follow-up through a drilling program.
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Everton is actively exploring in the Dominican Republic adjacent to the Pueblo Viejo Mine, owned by the world’s two largest gold mining companies, Barrick Gold Corporation (60%) in partnership with Goldcorp Inc. (40%) (“Goldcorp”). Everton also holds an interest in the Opinaca region of James Bay, Quebec where the Company has partnered with Hecla (formerly Aurizon Mines Ltd.) which is advancing Everton’s interest by funding exploration work on one of the largest land packages adjacent to Goldcorp’s Eleonore Mine.
For further information on Everton Resources Inc., please visit www.evertonresources.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, such as statements of Everton’s plans, objectives, strategies, expectations and intentions. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to Everton, or its management, are intended to identify such forward-looking statements. Many factors could cause Everton’s actual results, performance or achievements to be materially different any future results, performance or achievements that may be expressed or implied by such forward-looking statements. The forward-looking statements included in this press release represent Everton’s views as of the date of the release. While Everton anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information. All subsequent written and oral forward-looking statements attributable to Everton or persons acting on its behalf are expressly qualified in their entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>