7/10/2006
EVERTON INVESTORS ROB MCEWEN AND SPROTT ASSET MANAGEMENT EXERCISE 2,575,000 WARRANTS EARLY TO FUND ONGOING EXPLORATION PROGRAMS
IN JAMES BAY, QUEBEC AND DOMINICAN REPUBLIC
Everton Resources Inc. (TSX-V – EVR) announces that Robert R McEwen early exercised 1.5 million warrants of Everton Resources Inc. at a unit price of 70 cents for a total cash consideration of $1.05 million.
Prior to the exercise of warrants, Mr. McEwen held three million common shares, representing approximately 7.6 per cent of the outstanding common shares of Everton Resources. This transaction increases the ownership to 11.4 per cent.
Assuming the exercise of all remaining warrants, Mr. McEwen will hold approximately 15.2 per cent of the outstanding common shares of the Company. Upon completion of this transaction, Mr. McEwen will hold 1.5 million warrants and 4.5 million common shares.
Also Sprott Asset Management has agreed to early exercise 1,075,000 warrants at a unit price of 40 cents in two investments funds.
André Audet, Chairman & CEO says: "These exercise of warrants will inject $1.48 million in the Company and will allow Everton to aggressively advance its projects and generate multiple drill targets for late summer and early fall drilling campaigns."
These common shares were issued from treasury of Everton Resources pursuant to two earlier private placements (see Press Releases April 13, 2006 and December 1, 2004).
EVERTON holds one of the LARGEST LAND POSITION and is actively exploring Quebec' James Bay Region, where GOLDCORP INC. (NSYE:GG TSX:G) is proposing to spend hundreds of millions developing its recent acquisition, the Eleonore discovery and in the Dominican Republic where the worlds largest gold company , BARRICK GOLD (NYSE/TSX:ABX), is partnering with GOLDCORP to develop one of the worlds largest gold deposits, Pueblo Viejo, at an estimated cost of $1.4 billion.
The TSX Venture Exchange neither approves nor disapproves of the information contained in this News Release. The Company’s Shares are listed on the TSX Venture Exchange and trade under the symbol "EVR".
For more information, please contact:
André Audet Chairman & CEO
Tel: 613 241 2332
Fax: 613 241 6005
Email address: [email protected]
www.evertonresources.com
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