EVR: Look for a Breakout

Resource Stock Digest (09/28/2010)
"Opinion—buy Everton. [Everton] signed a binding letter agreement to sell all of the issued and outstanding shares of its wholly owned subsidiary Hays Lake Gold Inc. to Kaskattama Inc. for a total consideration of ~$7.6M. HLG holds the Shoal Lake Gold properties comprised of two significant high-grade gold deposits: Duport and Cedar Island on 81.3 km2, located in the Shoal Lake area, near Kenora, Ontario. The $7.6M consideration is allocated as follows (all currency amounts in Canadian Dollars, unless otherwise indicated):
  • $2M in cash to be paid upon execution of a final Sale and Purchase Agreement;
  • 14M shares of Kaskattama at a minimum price of $0.40/common share.

The transaction is expected to close by no later than November 15, 2010. This will give more funds for Everton to explore and concentrate in the Dominican. Just waiting on news for drilling to start in Dominican, which should get some excitement going in the stock. Resistance for EVR is around $0.30, a close of $0.33 or better would be a good signal of a breakout."

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