TORONTO, ONTARIO, Dec. 28, 2010 (Marketwire) -- Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE:CWM) announces that, pursuant to the terms of warrants (the "Warrants") issued by one of its predecessors, Gold Summit Corporation, on May 21, 2009 and on June 12, 2009 (part of non-brokered private placements (the "Offerings") of 2,785,964 units and 1,818,898 units, respectively, both at a price of $0.10 per unit), the Company has elected to exercise its right (the "Acceleration Right") to advance the expiry date and reduce the period within which the Warrants may be exercised, and has sent written notice of the acceleration to each of the holders of Warrants. As a result of the amalgamation of Crown Minerals Inc. and Gold Summit Corporation to continue as Crown Gold Corporation, the warrants issued by Gold Summit Corporation were adjusted on a 1.65:1.00 ratio with the number of warrants being increased on that ratio and the exercise price being reduced to $0.09091 per share. The Warrants now have an exercise price of $0.09091 per share and will now expire on February 10, 2011.
The Acceleration Right was triggered when, for a period of 20 consecutive trading days, the volume weighted average closing price of the Company's common shares on the TSX Venture Exchange was at a price equal to or greater than $0.1515 (the original trigger price of $0.25 was adjusted by the amalgamation ratio of 1.65:1.00). That condition for acceleration of the expiry date was met on December 22, 2010. Warrant holders will be entitled to exercise the Warrants until 5:00 p.m. (Toronto time) on February 10, 2011. All Warrants not exercised on or before such time will expire and be of no further force and effect.
Crown Gold, 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 the company. 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. Crown is planning additional drilling on the McKenzie Island project in the first quarter of 2011. Other northwest Ontario properties are Tabour Lake near Kenora and Surprise Lake in the Uchi Belt, east of Red Lake. In northeastern Ontario, the Company holds strategic land positions adjacent to Trelawney's Chester discovery near Gogama, at the old Stairs Mine near Matachewan and in the Timmins camp.
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.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or contents of this news release.
Crown Gold Corporation
President and CEO
Crown Gold Corporation