leaky?, page-4

EVG have only signed a LOI with Novus.

They still very much have the upper hand with respect to any capital needed to be raised, and indeed with the whole transaction.

A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized.

They wont place the shares at a discount to the market, surely they would walk away from the deal if that needed to happen.

They most probably need the LOI before they can finalise the placement of the new shares with the interested parties or party.

The announcement from Feb 8th 2010 states:

Mr Brian Johnson, Executive Chairman of EnviroGold Limited
wishes to advise the following:
i) after considerable delays due to unavailability of legal advisors over the
Christmas-New Year period, a final draft of a Subscription Agreement was
settled on 1 February 2010 to enable a substantial Latin American asset
management group to subscribe for 100 million shares in EnviroGold Limited
at 14.6 cents per share;
ii) a senior executive of the Group confirmed that the Subscription Agreement
should be signed by 5 February 2010, but on 6 February advised they required
EnviroGold to move to 100% ownership of the Las Lagunas gold project before
proceeding with the proposed investment;

EVG have since moved to 100%

If the same organization wants 75 million shares they are going to have to pay a similar price, maybe more as the project is at a far more advanced stage

I dont know why the sudden rush of sellers, but I dont think they have thought through the process to well, and they must be a pain in the butt to EVG management.

As stated before, the market is an irrational beast.

Their is certainly no shortage of sellers, but in time I believe they will prove to be mistaken.