02/20/2007
EVERTON RESOURCES COMPLETES $12,500,000 FINANCING
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.
Everton Resources Inc. (“Everton”) (TSX-V: EVR) is pleased to announce that it completed its previously-announced private placement of 10,000,000 Units at a price of $1.25 per Unit for gross proceeds of $12,500,000.
Each Unit is comprised of one common share (a “Unit Share”) of Everton and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to purchase one common share of Everton at a price of $1.65 until August 20, 2008, provided that if the weighted-average price of the common shares of the Company on the TSX Venture Exchange is equal to or greater than $2.50 for 20 consecutive trading days, the holder will have 30 days to exercise their warrants failing which the warrants will expire, provided that such expiry date shall be no earlier than June 21, 2007.
The brokered private placement was completed by a syndicate of agents led by Orion Securities Inc. and including Canaccord Adams Inc. (collectively the “Agents”). In connection with the private placement, the Agents received cash commission equal to 6.5% of the gross proceeds of the Offering. The Agents also received compensation options (the “Compensation Options”) equal to 6.5% of the total number of Units sold pursuant to the Offering. Each Compensation Option entitles the Agents to purchase one Unit at the Issue Price until August 20, 2008.
Everton will use the net proceeds from the Offering to fund its further exploration and development in the Opinaca region of James Bay, Quebec, to further advance the Company’s exploration activities in the Dominican Republic, and for general corporate purposes.
The Unit Shares, the Warrants, Compensation Options and the securities issuable upon exercise thereof are subject to resale restrictions until and including June 21, 2007.
This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.
Everton is actively exploring in the >Opinaca region of James Bay, Quebec where Everton has amassed one of the largest land claims adjacent to the Eleonore gold discovery, and where Goldcorp Inc. (NYSE:GG, TSX:G) is proposing to spend several hundreds of millions of dollars developing its recent property acquisition. Everton is also actively exploring in the Dominican Republic adjacent to where the world’s largest gold mining company, Barrick Gold (NYSE/TSX:ABX), is partnering with Goldcorp to develop the 15 million ounce Pueblo Viejo gold deposit, one of the world’s largest undeveloped gold deposits, at an estimated cost of $1.4 billion.
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For more information, please contact:
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”
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