Crown Gold Announces Amendment of Sakoose Option Agreement
TORONTO, ONTARIO -- (Marketwire) -- 02/28/11 -- Crown Gold Corporation ('Crown') (TSX VENTURE: CWM) announces that it has entered into a letter agreement to amend the payment terms of the option agreement dated December 27, 2009 regarding the Sakoose property (the 'Sakoose Option Agreement'), whereby Crown was granted an option to acquire a 100% interest in ten claims (the 'Claims') held by the optionor (the 'Optionor') by making certain cash payments and by issuing a certain number of shares.
Pursuant to the letter agreement amending the Sakoose Option Agreement, Crown has agreed to: (i) issue 300,000 common shares to the Optionor as soon as all necessary corporate and regulatory approvals have been obtained; (ii) pay $40,000 to the Optionor in cash or shares (at the option of Crown) on August 27, 2011; and (iii) pay $50,000 to the Optionor in cash or shares (at the option of the Optionor) on August 27, 2012. After making the aforementioned cash or share payments, Crown would own a 100% undivided interest in the Claims comprising the Sakoose property subject to a 2% NSR royalty in favour of the Optionor.
Crown, formed by the recent amalgamation of Crown Minerals and Gold Summit, is exploring for high grade gold and silver deposits in Nevada and Ontario. In Nevada, Crown has NI 43-101 compliant inferred resources totaling approximately 337,000 ounces of gold at its Monte Cristo and Sugarloaf properties. These are the most advanced of five, high-grade, epithermal vein systems controlled by Crown. The existing resources at Monte Cristo and Sugarloaf remain open along strike and at depth. Planning for further exploration and underground or open-pit development is underway. The three other Nevada properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined, essentially undrilled targets.
In Ontario, Crown has reported encouraging assay results from drilling on its McKenzie Island property at Red Lake and follow up drilling is in progress. Other northwest Ontario properties are Tabour Lake near Kenora and Surprise Lake in the Uchi Belt, east of Red Lake. In northeastern Ontario, Crown holds strategic land positions adjacent to Trelawney's Chester discovery near Gogama, at the old Stairs Mine near Matachewan and in the Timmins camp.
Information in this news release, including but not limited to Crown obtaining a 100% interest in the Sakoose property, constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, Crown's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to Crown. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Crown Gold Corporation
Mr. Stephen Dunn
President and CEO
(416) 822-3343
Crown Gold Corporation
Dr. Anthony Taylor
Executive Chairman
(775) 284-7200
www.crowngoldcorp.com