Newmont Mining has agreed to purchase more than 4.8 million shares of Evrim Resources for $1.50 per share for gross proceeds of nearly $7.3 million. Evrim said it will use most of the funding for the Cuale high-sulphidation epithermal gold project in Jalisco, Mexico.

“The investment by Newmont is a strong endorsement for the potential of the Cuale gold project,” said Evrim CEO Paddy Nicol. “Evrim and Newmont have established a strong exploration relationship for several years undertaking targeted generative exploration in two areas of North America, and this investment is a natural evolution of that relationship.”

He said they would use Newmont’s technical knowledge and expertise in high-sulphidation gold systems to advance Cuale.

Evrim’s Phase 3 exploration program is continuing ahead of a planned 3,000-m drill program. Trenching, CSAMT geophysics, detailed mapping and rock-chip sampling are nearing completion and a broad soil geochemical survey was completed earlier in the program. Results from these programs are expected throughout September.

Evrim also completed a five-year exploration agreement with the local surface rights owners, the Cuale Ejido, to secure ongoing access to the project.

Permit applications for drilling have been submitted with an expected start to drilling in mid-October. Evrim had applied for an expedited permit, however, the Secretariat of Environment and Natural Resources (SEMARNAT) requested an environmental assessment report. The report has been completed and was submitted to SEMARNAT in early August.