Chalice Gold Mines and Coventry Resources agree to extend due diligence condition precedent

PERTH, Western Australia, Oct. 11, 2013 /CNW/ - Chalice Gold Mines Ltd. (TSX: CXN; ASX: CHN; "Chalice") and Canadian gold developer Coventry Resources Inc. (ASX: CYY; TSX: CYY; "Coventry") advise that, in relation to the proposed merger by Statutory Plan of Arrangement between the two companies announced on September 30, 2013, the parties have agreed to extend the 14 day due diligence period by a further 21 days.

The due diligence period will now end on or before November 2, 2013. A revised indicative timetable to complete the merger will be detailed upon executing an Arrangement Agreement.


BILL BENT. Managing Director
Chalice Gold Mines Ltd.

STEVEN CHADWICK, President & CEO
Coventry Resources Inc.


Forward Looking Statements

This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Chalice Gold Mines Ltd. (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law or regulation.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to whether the conditions to the completion of the merger between Chalice and Coventry Resources will be met, the estimation of mineral reserves and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, results of due diligence activities in relation to the proposed merger between Chalice and Coventry Resources; risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry, as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

None of the securities anticipated to be issued pursuant to the Arrangement have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and any securities issued in the Arrangement are anticipated to be issued in reliance upon available exemptions from such registration requirements pursuant to Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.



Contact

Coventry Resources Inc.
Bill Bent, Managing Director
Telephone (W): +61 9322 3960
Telephone (M): +61 433790070

Steven Chadwick, President & CEO
Telephone (W): +61 8 9324 1266

Chalice Gold Mines Ltd.
Tim Goyder, Executive Chairman
Telephone (W): +61 9322 3960

Keith Smart, Business Development Manager
Telephone (W): +61 9322 3960

For media inquiries, please contact:
Nicholas Read, Read Corporate
Telephone: +618 9388 1474