/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
VANCOUVER, Aug. 7 /CNW/ - Evolving Gold Corp. (TSX-V: EVG) (OTCBB: EVOGF)
("Evolving") is pleased to announce that it has entered into a letter of
intent with Golden Predator Mines Inc. and Golden Predator Mines (US) Inc.
(collective, "Golden Predator") for the acquisition of Golden Predator's
mining options on a 100% undivided interest in the Rattlesnake Hills Property,
located in Natrona County, Wyoming (the "Property Option"). Golden Predator
currently holds an option on the Rattlesnake Hills Property with Bald Mountain
Mining Company ("Bald Mountain").
The Rattlesnake Hills Property is underlain by an Eocene alkaline
volcanic field, covering about 100 square miles, which is part of the greater
Rocky Mountain "alkalic" gold province stretching from British Columbia, to
northern Mexico. Other volcanic complexes in this belt host large gold
deposits such as Cripple Creek, Colorado (27 million ounces of gold produced),
Zortman-Sandusky, Montana (2 million ounces of gold produced), and Ortiz, New
Mexico (1.5 million ounces of gold produced). Mineralization in the
Rattlesnake Hills is centered on a nested diatreme complex and is associated
with widespread potassium feldspar alteration similar to the Cripple Creek
deposit. Newmont Mining Corporation and American Copper and Nickel Company
(ACNC) each conducted drilling on the property in the 1990's in two areas, the
North Stock and Antelope Basin, respectively. At the North Stock, Newmont
reportedly encountered drill intercepts including 149 meters averaging
1.62 grams per tonne (gpt) gold, 75 meters grading 1.28 gpt gold and 60 meters
grading 1.05 gpt gold. ACNC reportedly encountered 101 meters grading 0.78 gpt
gold in a shallow reverse circulation hole.
Quinton Hennigh, Ph.D., Evolving's Vice President of Exploration stated:
"The Rattlesnake Hills property represents an opportunity of Evolving Gold to
explore for a significant gold deposit within the world class Rocky Mountain
alkalic province. Although gold mineralization associated with these types of
ore bodies can be subtle, alkaline gold deposits can be very large as
demonstrated by Cripple Creek".
The agreement with Golden Predator is subject to certain conditions,
including, among other things, due diligence review by Evolving of the
Rattlesnake Hills Property's mineral claims; the negotiation, execution and
delivery of a definitive acquisition agreement (the "Evolving Gold Option
Agreement"); approval of the Evolving Gold Option Agreement by the board of
directors of Evolving; and receipt of all required regulatory approvals.
In order to exercise the proposed option, Evolving has agreed to pay
Golden Predator 3 million shares ("Shares") of Evolving at a deemed price of
$0.40 per Share to be issued subject to the policies of the TSX Venture
Exchange and subject to any requirement for escrow that may be imposed by the
TSX Venture Exchange. In order to exercise the rights under the Evolving Gold
Option Agreement, Evolving will issue the Shares as follows: 1,000,000 shares
upon closing; 1,000,000 shares upon the one year anniversary of closing; and
1,000,000 shares on the 2 year anniversary of closing. If Evolving fails to
make a share payment as contemplated above, Golden Predator may terminate the
Evolving Gold Option Agreement. Golden Predator will retain a 0.5% NSR in
respect of the Rattlesnake Hills Property and Evolving shall retain the right
to buy back 0.25% of that NSR for $375,000(USD) at the option of Evolving. In
addition, Golden Predator will retain the right to purchase up to 10% of any
shares offered by Evolving during the term of the Evolving Gold Option
Agreement (with Golden Predator's purchase subject to the same terms and
conditions as other purchasers participating in the offering).
In compliance with National Instrument 43-101 ("NI 43-101") Lawrence A.
Dick, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of
this news release.
About Evolving Gold Corp.
Evolving Gold Corporation is an emerging exploration and development
company focused on building value through the acquisition and exploration of
world class prospective gold properties primarily in the southwestern United
States, in particular Nevada, New Mexico, and Wyoming.
For more information on the Company, please visit our web site at
On Behalf of the Board of Directors
EVOLVING GOLD CORP.
"Dr. Lawrence Dick"
Dr. Lawrence Dick, P.Geo.
President and Director
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Webmasters: Please update Evolving Gold Corp
on your site. We are now listed on the TSX-V, symbol EVG.
For further information:
For further information: Evolving Gold Corp., Bill Gillies, Investor
Relations, firstname.lastname@example.org, Direct (604) 639-0432, Toll free
1-866-604-3864, www.evolvinggold.com OR Renmark Financial Communications Inc.,
Christopher Wells: email@example.com; Philippe Deserres:
firstname.lastname@example.org, Tel.: (514) 939-3989, Fax: (514) 939-3717,