EVERTON SELLS ITS SIRMAC LITHIUM PROPERTY TO EXPLORATION NEMASKA INC.
Everton Resources Inc . (“Everton”) (TSX-V: EVR, Frankfurt: ERV) is pleased to announce that it has signed a sale agreement with Exploration Nemaska Inc. (“ Nemaska”) ( TSX-V:NMX) concerning the Sirmac Lithium property. The property is comprised of 15 mining claims, covering about 645 hectares, located in SNRC sheet 32J11, province of Quebec. The property lies approximately 130 kilometres south of Nemaska’s Whabouchi lithium/beryllium deposit, alongside the Route de Nord. It hosts 12 spodumene bearing pegmatites, on which historical channel sample assays have returned 4.52% Li2O over 14 m.
“We believe that Nemaska’s experienced management will focus on driving this project forward” stated Andre Audet, Chairman and CEO of Everton. “Completion of this transaction crystallizes significant value for Everton shareholders and will give the Company cash and liquid assets along with a potential recurring revenue stream allowing us to focus on our exploration expertise, advancing the drilling programs in the Dominican Republic, where we hold a substantial land package adjacent to Barrick and Goldcorp’s Pueblo Viejo project which is currently being developed at an estimated cost of US$3 billion,” commented Mr. Audet.
Nemaska will purchase 100% interest in the property for $30,000 cash and the issuance of 500,000 shares and 500,000 share purchase warrants at a price of $0.60 per share for a period of 24 months from closing. The agreement includes an adjustment clause for the number of shares to be issued in favour of Everton if the Corporation has not started the process to separate its lithium related assets from its other exploration assets on or before June 30, 2011. In such case, the Corporation will issue an additional 250,000 shares and 250,000 share purchase warrants. The property is subject to a 1% NSR royalty that can be purchased for $1,000,000. The shares and share purchase warrants to be issued will be subject to an agreed 6 month hold period from issuance. This agreement is subject to the approval of the regulatory authorities.
Everton is partnered with Brigus Gold on actively exploring in the Dominican Republic adjacent to the US$3 billion Pueblo Viejo project, currently being developed by the world's largest gold mining company, Barrick Gold Corporation (60%) (NYSE/TSX: ABX) in partnership with Goldcorp (40%) ("Goldcorp") (NYSE: GG, TSX: G). Planned divestiture of its 100%-owned subsidiary Hays Lake Gold containing the Shoal Lake Gold Project in Kenora, Ontario is expected to provide internal funding to advance the Ampliacion Pueblo Viejo project. Everton also holds an interest in the Opinaca region of James Bay, Quebec where the Company has partnered with Aurizon Mines Ltd. who is advancing Everton’s interest by funding 100% of all exploration work on one of the largest land packages adjacent to Goldcorp's Eleonore gold deposit.
Exploration Nemaska Inc.
Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (about 1,716 hectares), Lac Levac (about 9,200 hectares), Lac Arques (about 39,470 hectares), and Lac des Montagnes (about 12,740 hectares) properties, all 100 % owned. These properties are contiguous and cover about 85 km of the Lac des Montagnes green belt polymetallic formation. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Némiscau airport.
For more information, please contact:
Andre Audet, Chairman and CEO
Gary Economo, Manager, Corporate Communications
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 from 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.