Evrim Resources Welcomes Strategic Investment from Newmont Mining Corporation

VANCOUVER, British Columbia, Aug. 28, 2018 (GLOBE NEWSWIRE) -- Evrim Resources Corp. (“Evrim” or the “Company”) is pleased to announce it has arranged a strategic investment (the “Private Placement”) with Newmont Canada Corporation (“Newmont”), a wholly owned subsidiary of Newmont Mining Corporation.  Newmont has agreed to purchase 4,848,401 shares of the Company at a price of $1.50 per share for gross proceeds of $7,272,601.50.  Proceeds from the Private Placement will provide funding for the Cuale high sulphidation epithermal gold project in Jalisco, Mexico and for general corporate purposes.  The Private Placement is subject to regulatory approval of the TSX Venture Exchange.

“The investment by Newmont is a strong endorsement for the potential of the Cuale gold project,” commented Evrim’s CEO Paddy Nicol.  “Evrim and Newmont have established a strong exploration relationship for several years undertaking targeted generative exploration in two areas of North America, and this investment is a natural evolution of that relationship.   We are pleased to once again utilize Newmont’s technical knowledge and expertise in high sulphidation gold systems to advance Cuale.”

Evrim and Newmont have entered into an investment agreement (the “Agreement”) pursuant to which Newmont will complete the Private Placement and will have certain investment rights for a period ending on the earlier of the fifth anniversary from the date of closing or the date on which Evrim enters into an agreement to divest all or part of its interest in the Cuale project to Newmont or third parties, including the following:

• Voting support whereby Newmont will support matters recommended by Evrim’s Board of Directors so long as those matters do not adversely prejudice Newmont’s rights under the Agreement
• Re-sale restriction on certain Newmont share dispositions
• Newmont will retain participation rights in any future equity financings to maintain pro rata ownership interest
• Newmont will retain a Right of First Offer (“ROFO”) on the Cuale project in the event Evrim seeks to divest all or part of its interest in the Cuale project
• The formation of a joint technical committee that collaborates the technical expertise of Newmont and Evrim to advance the Cuale project
• Eighty percent (80%) of the gross proceeds from the Private Placement ($5,818,081) will be earmarked for the advancement of Cuale

Newmont and Evrim have also agreed to a standstill clause whereby Newmont will be restricted from acquiring Evrim shares until February 28, 2020, subject to acceleration in the event Evrim enters into a transaction with respect to the Cuale project prior to that date.

Cuale Exploration Update

Evrim’s Phase 3 exploration program is continuing ahead of a planned 3,000 metre drill program.  Trenching, CSAMT geophysics, detailed mapping and rock-chip sampling are nearing completion and a broad soil geochemical survey was completed earlier in the program.  Results from these programs are expected throughout September.

Evrim also completed a five year exploration agreement with the local surface rights owners, the Cuale Ejido, to secure ongoing access to the project.

Permit applications for drilling have been submitted with an expected start to drilling in mid-October.   Evrim had applied for an expedited permit, however the Secretariat of Environment and Natural Resources (“SEMARNAT”) requested an environmental assessment report.  The report has been completed and was submitted to SEMARNAT in early August.

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 of Technical Services.  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 is well financed, has a diverse range of quality projects and a database covering substantial areas of Mexico and portions of southwestern United States. The Company’s projects 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.

Paddy Nicol

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 Donna Yoshimatsu at 416-722-2456. 

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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.