Wedoany.com Report-Aug. 31, Evergold, a Canadian mining company, has entered into a definitive option agreement to acquire full ownership of the Copper King inlier claim groups, covering 173 hectares, within the northern half of its Golden Lion property in British Columbia, Canada. The acquisition strengthens Evergold’s position in a region known for its mineral potential.

Historical exploration revealed high copper and silver mineralisation values in the property.

Under the agreement, Evergold will consolidate its common shares at a ratio of ten pre-split shares to one post-split share. The company will issue 533,332 post-consolidation shares over two years in three stages: the first issuance occurs one week after the consolidation’s effective date, with subsequent issuances on July 2, 2026, and July 2, 2027. All shares will be subject to a four-month holding period from their issuance date.

Upon exercising the option, Evergold will grant a 2.5% net smelter returns (NSR) royalty to the optionors, with an option to buy back 1.5 percentage points for C$1.5 million ($1.08 million). The agreement requires regulatory approvals, including from the TSX Venture Exchange (TSXV), and the share consolidation must be approved by two-thirds of Evergold’s shareholders.

The Copper King property includes the Goat, Chuck, Copper King, and Claw prospects. Historical drilling at the Claw prospect revealed notable copper mineralization, though no assays were conducted at the time. Rock sampling in 1984 confirmed significant copper and silver mineralization in vein-fracture systems and altered country rock. A company representative noted: “It was recommended to defer further exploration until metal prices improved and no exploration work has been carried out since then.”

The acquisition aligns with Evergold’s strategy to expand its exploration portfolio in British Columbia, leveraging the Golden Lion property’s potential. The Copper King claims are strategically located, offering opportunities for future exploration as market conditions improve. The company aims to capitalize on the region’s mineral resources to support long-term growth.

The deal positions Evergold to advance its exploration efforts while maintaining financial discipline through staged share issuances and royalty provisions. By securing full ownership of the Copper King claims, Evergold enhances its asset base, paving the way for potential resource development in a region with a history of significant mineralization.