Crown Gold Agrees to Sell Monte Cristo Property for Up to $5.5 Million in Cash
TORONTO, ONTARIO -- (Marketwire) -- 05/29/12 -- Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE: CWM) announces that it has signed an agreement with a subsidiary of Hecla Mining Company for the sale by Crown of certain unpatented mining claims and the transfer and/or assignment of certain mining leases and other assets comprising Crown's Monte Cristo property in Esmeralda County, Nevada, U.S.A. (collectively, the "Purchased Assets") for US$4,500,000 in cash, plus a potential additional purchase price payment of US$1,000,000 conditions are met.
As soon as practicable following the closing of this transaction, the Company will distribute US$3,650,000 (approximately US$0.043 per share) to its shareholders pro rata based upon the Company's outstanding shares as of the record date duly determined for such distribution. In addition, to the extent received, the Company will distribute to its shareholders pro rata the portion of the potential US$1,000,000 payment in excess of certain identified expenses.
The sale of the Purchased Assets by Crown to the buyer is subject to a number of conditions, including obtaining shareholder and regulatory approvals, and satisfactory completion of buyer's due diligence, and is expected to close in the third quarter of 2012.
Crown's President and Chief Executive Officer, Stephen Dunn, stated, "this transaction will allow Crown to distribute value from one of its Nevada properties to Crown shareholders and then focus on its recent discovery on Mackenzie Island in Red Lake, Ontario. Drilling along the north west striking Bishops Break trend on our Red Lake property in 2011 yielded promising results, including 75 g/t (2.2 opt) gold over 0.91m (3 feet). A soil, gas, and hydrocarbon follow-up study last fall identified a number of new targets at the Mackenzie Island project that we hope to drill this coming summer."
For more information please see the Crown website at www.crowngoldcorp.com.
This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expected to", "plans", "planned" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company's management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Contacts:
Crown Gold Corporation
Mr. Stephen Dunn
President and CEO
(416) 361-2827
info@crowngoldcorp.com
www.crowngoldcorp.com