Toronto, Ontario–(Newsfile Corp. – April 30, 2015) – Crown Mining Corporation, (TSXV: CWM) (“Crown” or the “Company“) is pleased to announce that it has signed a letter of intent with Canyon Copper Corp. (TSXV: CNC) (“Canyon”) whereby the parties have agreed to enter into a definitive agreement (the “Definitive Agreement”) setting forth the terms of the proposed sale of the Moonlight Property to Crown (the “Transaction”).
Under the proposed terms of the Definitive Agreement, Canyon will transfer all of its interest in and to the Moonlight Property to Crown and, in consideration for which, Crown will pay Canyon CAD $350,000 and issue 2,000,000 common shares of Crown on closing of the Definitive Agreement.
Under the letter of intent, Canyon has granted Crown the exclusive right to negotiate the acquisition of the Moonlight Property until July 31, 2015. In consideration of this right, Crown has paid Canyon CAD $6,250.
The closing of the Transaction will be subject to customary conditions as well as (A) the existing advanced royalty holders (the “Advanced Royalty Holders”) approving the: (i) elimination of the advanced royalty payments, (ii) an increase in each of the Advance Royalty Holder’s net smelter returns from 1.0% to 1.25%, and (iii) the issuance of 300,000 common shares of Crown to each of the Advance Royalty Holders, (B) acceptance by the TSX Venture Exchange of the Definitive Agreement and the transactions contemplated therein, and (C) approval of the shareholders of Canyon of the Transaction.
The parties have until July 31, 2015 to settle the Definitive Agreement. If the Definitive Agreement is not executed by that date, the letter of intent will terminate.
About the Moonlight Property
The Moonlight property is adjacent to Crown’s Superior project in California, and it hosts a current National Instrument 43-101 (“NI 43-101”) compliant indicated resource of approximately 161 million tons averaging 0.324% copper, 0.003 ounces of gold and 0.112 ounces of silver per ton, and an inferred resource of 88 million tons averaging 0.282% copper per ton. Further details of this resource can be found in the Technical Report on the Moonlight Copper Property dated April 12, 2007 at Sedar.com.
Crown is focused on advancing its 100% controlled Superior Copper Project in Northeast California. The Superior Project has an inferred mineral resource of 57 million metric tonnes at an average grade of 0.43% with 547 million pounds of contained copper in 2 deposits. Further details of this resource can be found in the Technical Report on the Superior Project dated November 7, 2014 at Sedar.com.
Mr. George Cole is the Qualified Person pursuant to NI 43-101 responsible for the technical information contained in this news release, and he has reviewed and approved this news release.
For more information please see the Crown website at www.crowngoldcorp.com.
For Further Information Contact:
Mr. Stephen Dunn, President, CEO and Director, Crown Mining Corporation (416) 361-2827 or email [email protected].
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.
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.
This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.