VANCOUVER, April 11 /CNW/ - Evolving Gold Corp. (TSX: EVG) (FSE: EV7) (the "Company" or "Evolving
Gold") announced that it has acquired ownership of 1,925,159 common shares of
Prosperity Goldfields Corp. ("Prosperity"). The common shares were
issued by Prosperity to the Company at a deemed price of $0.15 per
share pursuant to a funding agreement dated October 26, 2010 between
the Company and Prosperity (the "Funding Agreement"). Pursuant to the
terms of the Funding Agreement, Prosperity agreed to reimburse the
Company for the payment of transaction costs up to a maximum of
$300,000 related to the spin-out of Prosperity from the Company by way
of a dividend-in-kind to shareholders of the Company.
Immediately prior to the acquisition of the ownership of 1,925,159
common shares, the Company held directly and indirectly 10,000,001
common shares of Prosperity, together with share purchase warrants to
acquire an additional 5,000,000 common shares of Prosperity. These
securities, together with the 1,925,159 common shares referred to
above, represent an aggregate of 12,425,160 common shares or
approximately 49.2% of the issued and outstanding common shares of
Prosperity, calculated assuming exercise of the share purchase
A copy of the related early warning report may be obtained under
Prosperity's profile on SEDAR (www.sedar.com) or from the Chief Financial Officer of the Company at 604-685-6375.
About Evolving Gold Corp.
Evolving Gold is focused on exploring its gold discovery at Rattlesnake
Hills, Wyoming, an alkalic gold system, similar to the Cripple Creek
gold district in Colorado, and on four gold properties in and adjacent
to the productive Carlin district of northern Nevada, two of which are
100% controlled by Evolving Gold.
For more information about Evolving Gold please visit: www.evolvinggold.com. To receive regular updates or to receive a follow-up call from
Investor Relations please sign up at: http://evolvinggold.com/sign-up.php.
On Behalf of the Board of Directors
EVOLVING GOLD CORP.
SOURCE Evolving Gold Corporation
For further information:
Investor Relations: Graham Johnstone Tel: 778-331-2023 firstname.lastname@example.org