re: Ann: Further Delays to Financing Las Lagu... Hi Guys,I...

re: Ann: Further Delays to Financing Las Lagu... Hi Guys,

I talked to BJ earlier today and can only reiterate what the ASX announcement clearly portrayed in its tone;

BJ is very frustrated with the financing delays and with our JV partner being obstinate - basically, trying to become a big enough problem to get bought out.

I have stumped up a lot of cash for EVG to assist their working capital (subject of today's shareholder vote) and I only did so after meeting with BJ and his Australian based team.

I was very impressed with their competence and efficiency. Along with the attractive LL and Ecuadorian project numbers I decided to invest.

I fully appreciate how frustrated long term holders must be.

However, I have utmost confidence that BJ will steer EVG through this most frustrating period in the life of the company and we will eventually emerge as a profitable gold producer.

Whilst investors must look at the (1) downside risk and (2) the opportunity cost of holding a struggling minnow I would think twice before selling shares into this most recent news.

(1) The NPV of LL alone is now +4 times the market cap of EVG. EVG has, to date spent >USD$30m on the project and has a market cap of approximately AUD $25m. It is highly likely, with the POG/ POS where they are at present, that in an absolute worst case scenario the project can be sold for 25c in the NPV $1 (ie for around EVG's current market cap)... so IMO, there is very little absolute downside left.

(2) Other investments may seem attractive at present and the EVG investment a poor comparative investment. However, I think that a series of de-risking events will progressively occur over the next several months that will gradually re-rate the company.. after sitting through all the pain it would be sad to miss the boat by only a few months.

IMO, EVG could well be 3 - 4 times its current SP/ MC price within 36 months.

Anyway... good luck all, but I can say that BJ and his team are working their arses off for us and I think they will come through in the end... what other MD do you know that in a cash flow crisis (1) works without taking a cash wage and (2) stumps up millions of his own money unsecured and interest free.

cheers
John