Everton Resources Inc.
TSX VENTURE : EVR
FRANKFURT : ERV

Everton Resources Inc.

September 16, 2010 08:30 ET

Everton Signs two Letters of Intent Totalling $10 Million With Aurizon for its Opinaca Property - Jointly Owned With Azimut and its Wildcat Property in Quebec and Closes a $250,000 Private Placement

OTTAWA, ONTARIO--(Marketwire - Sept. 16, 2010) - Everton Resources Inc. ("Everton") (TSX VENTURE:EVR), (FRANKFURT:ERV) and Azimut Exploration Inc. ("Azimut") (TSX-V: AZM) are pleased to announce the signing of a letter of intent with Aurizon Mines Ltd. ("Aurizon") (TSX: ARZ, NYSE Amex: AZK) whereby Aurizon can acquire up to an undivided 60% ownership interest in their Opinaca property located in the James Bay area, 350 kilometres north of Matagami, Quebec. The Opinaca property is owned by Everton and Azimut as to an undivided 50% interest each and comprises 649 mining claims, covering 33,849 hectares, and is located in the area of Goldcorp's Eleonore project.

The key terms of the letter of intent are as follows:

  • Aurizon can earn a 50% interest in the project by making cash payments totaling $580,000 and incurring expenditures of $6,000,000 over four years, including 5,000 metres of drilling by the second anniversary.
  • Aurizon will be the operator during the earn-in period for the initial 50% interest in the project, after which a joint venture will be formed.
  • After earning its initial 50% interest in the project, Aurizon may then elect to earn an additional interest of 10% for a total interest of 60%, by making cash payments totaling $300,000 over three years from the election date, incurring expenditures totaling $3,000,000 over three years from the election date, and delivering an independent pre-feasibility study on or before the fourth anniversary.
  • In addition, in the event that prior to the end of the eighth year of the initial option agreement, mineral resources of at least 2,000,000 ounces of gold, at an average grade of at least 6 grams of gold per tonne, are discovered, Aurizon shall make a payment of $1,500,000 payable in Aurizon Common shares, subject to regulatory approval.

Everton is also pleased to announce the signing of a second letter of intent with Aurizon whereby Aurizon can acquire up to an undivided 65% interest in Everton's Wildcat property located in the James Bay area, 350 kilometres north of Matagami, Quebec. The Wildcat property is 100% owned by Everton, comprises 411 mining claims, covering 21,476 hectares, and is located in the area of Goldcorp's Eleonore project.

The key terms of the letter of intent are as follows:

  • Aurizon can earn a 50% interest in the project by incurring expenditures of $3,250,000 over four years, including 3,000 metres of drilling within two years.
  • Aurizon will also subscribe for a private placement of 1,000,000 units of Everton at a price of $0.25 per unit, each unit comprising one common share and one share purchase warrant exercisable to acquire one additional common share at $0.40 per share for a term of two years.
  • Aurizon will be the operator during the earn-in period for the initial 50% interest in the project, after which a joint venture will be formed.
  • After earning its initial 50% interest in the project, Aurizon may then elect to earn an additional interest of 15% for a total interest of 65%, by making cash payments totaling $300,000 over three years from the election date, and delivering an independent pre-feasibility study by the end of the fourth anniversary of the election date.
  • In addition, in the event that prior to the end of the eighth year of the initial option agreement, mineral resources of at least 2,000,000 ounces of gold, at an average grade of at least 6 grams of gold per tonne, are discovered, Aurizon shall make a payment of $1,500,000 payable in Aurizon Common shares, subject to regulatory approval.

"We are very pleased to have a strong partner like Aurizon in our Quebec properties. Its commitment and expertise will certainly prove to be a major benefit to Everton as we move into the next stage of our companies' plans. We are looking forward to a mutually beneficial exploration program that will unlock the value in our Quebec properties. Everton will continue to focus its exploration activities with an aggressive drill program in the Dominican Republic adjacent to the Goldcorp/Barrick Pueblo Viejo deposit", stated Andre Audet president and CEO of Everton.

In Other News:

The Company also announces the closing of a private placement (the "Offering") of 1,000,000 units at a price of $0.25 per unit for gross proceeds of $250,000. Each unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share in the capital of the Company at a price of $0.40 for twenty-four months. The funds raised pursuant to the Offering will be used to fund the Company's general working capital. The Company has paid finder's fees totaling $20,000 and issued 80,000 non-transferable finder's fee warrants, each warrant entitling the holder to acquire one Common Share of the Company at a price of $0.25 per share expiring in twenty-four months. All securities issued in the Offering are subject to a four month and one day hold period from the closing of the Offering. Completion of the offering is subject to the approval of the TSX Venture Exchange

Everton is actively exploring in the Dominican Republic adjacent to the US$2.7 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). Everton also holds through its 100%-owned subsidiary Hays Lake Gold various options consolidated land package located in the Shoal Lake area, near Kenora, Ontario. The Shoal Lake Gold Project is comprised of two significant high grade gold deposits: Duport and Cedar Island on 81.3 km2. The Company is also exploring in the Opinaca region of James Bay, Quebec where the Company has amassed one of the largest land claims adjacent to Goldcorp's Eleonore gold deposit.

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.

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