VANCOUVER, April 11 /PRNewswire-FirstCall/ - 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 warrants.
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.
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On Behalf of the Board of Directors
EVOLVING GOLD CORP.
SOURCE Evolving Gold Corporation