TORONTO, ONTARIO, Jun. 16, 2010 (Marketwire) -- Crown Minerals Inc. ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce that it has completed the transactions with Trelawney Mining and Exploration Inc. ("Trelawney") on two mineral properties in close proximity to Trelawney's Chester Project in Northern Ontario.
In the first agreement, Trelawney purchased an 80% interest in Crown's Chester/Yeo property by making a one-time payment of $120,000 to Crown. The property consists of 3 claims with 14 units located approximately 1 km west of Trelawney's newly-discovered Cote Lake deposit. Crown will retain a 20% carried interest until the completion of a positive pre-feasibility study.
In the second agreement, Crown has been granted the option to earn a 50% interest in Trelawney's recently staked Benneweis property, east of the Chester Project. This property consists of 20 claims with 257 units located in Benneweis, Groves, Neville and St. Louis townships. Crown has issued to Trelawney the first tranche of 400,000 Crown common shares, and will issue a further 1,200,000 Crown shares and complete exploration expenditures of $2.5 million over a period of 5 years to earn the 50% interest.
Crown is also pleased to announce the appointment of John Oliveira as the Chief Financial Officer of the company subject to regulatory approvals. John is replacing James Fairbairn as CFO who will remain as a director of the company.
Crown has also closed the last tranche of its previously announced non-brokered private placement. An aggregate of 250,000 units were sold to an accredited investor at a price of $0.10 per unit for gross proceeds of $25,000. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at any time within 18 months after closing at a price of $0.20. One finder received in the aggregate 8% cash commission and 25,000 finder's warrants, being 10% of the aggregate number of units purchased through the finder. Each finders warrant entitles the holder to purchase for a period of 18 months following closing one finders unit comprised of one common share and one-half of a common share purchase warrant with the same terms as above for a price of $0.10. The gross proceeds to Crown from the sale of these units will be used for working capital purposes.
Crown is exploring for gold and base metals in both Ontario and Nevada, and recently announced an agreement with Gold Summit Corporation to combine the two companies. For more information please see the Crown website at www.crownmin.com.
Forward-looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond Crown's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
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