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"The investment by Newmont is a strong endorsement for … Cuale"

Joint venture-focused Evrim Resources (TSXV: EVM) says it has teed up a C$7.27 million strategic investment by Newmont Mining to progress its Cuale gold project in Mexico.
"The investment by Newmont is a strong endorsement for … Cuale" "The investment by Newmont is a strong endorsement for … Cuale" "The investment by Newmont is a strong endorsement for … Cuale" "The investment by Newmont is a strong endorsement for … Cuale" "The investment by Newmont is a strong endorsement for … Cuale"

A sample from Cuale

Staff reporter

Evrim said it was a "natural evolution" of the pair's strong exploration relationship targeting generative exploration in North America.

Under the agreement, Newmont Canada will purchase 4.8 million Evrim shares at C$1.50 each and the companies would form a joint technical committee to advance Cuale.

Evrim had reported "very impressive" initial exploration results from Cuale in April, including a trench sample of 193.5m at 2.09g/t gold. 

It will use 80% of the proceeds to advance Cuale and is continuing a phase three exploration programme ahead of planned 3,000m drilling programme.

"The investment by Newmont is a strong endorsement for the potential of the Cuale gold project," CEO Paddy Nicol said.

Evrim describes the property as located within the Talpa de Allende area of Jalisco, near Agnico Eagle Mines' Barqueño project and Endeavour Silver's Terronera project.

Evrim and Newmont struck an initial exploration alliance in 2012 and then formed a co-funded, US$1.84 million two-year alliance in July last year designed to generate greenfield opportunities.

The company has partnerships at a number of its projects, including Ball Creek in British Columbia where Antofagasta has a $31 million earn-in.

Evrim shares rose 17.59% yesterday to C$1.27, capitalising it at $100.8 million.