TORONTO, ONTARIO, Nov. 16, 2009 (Marketwire) -- Crown Minerals Inc. ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce that it has entered into an option agreement with Teck Resources Limited ("Teck" or "the vendor") to acquire a 100% interest in a gold property (the "Property") near Matachewan, Ontario, subject to TSX Venture Exchange approval.
The Property includes the Stairs gold mine that was in production during the period 1964-1966 and is located approximately 18 kilometers west of Matachewan along the extension of the Larder Lake fault system. The Property consists of 18 mining leases totaling 338 hectacres. The Stairs mine was developed on five levels using a 700 foot shaft and has 6,226 feet of lateral development. The Ontario Geological Survey states a non NI 43-101 compliant historic reserve of 41,000 tons grading 30.2 grams/gold per ton.
In order to exercise the option, Crown has agreed to pay $10,000 in cash and issue 500,000 shares and 500,000 warrants to the vendor, then incur $1,500,000 in exploration expenditures in annual stages of $300,000, $500,000 and $700,000 respectively over a three year period ending October 31, 2012, with the first $300,000 of Expenditures being a commitment and the balance of the Expenditures being optional. Each warrant will entitle the holder to purchase one common share of Crown for $0.15 at any time within 2 years. The vendor has reserved the right to earn back from Crown a 51% interest in the Property by spending $3,000,000 on the Property and an additional 14% (to increase their interest to 65%) by spending an additional $1,500,000. The vendor will retain a 1.5% net smelter returns royalty if it elects not to earn back an interest in the Property.
Crown is preparing an exploration program for the Property to begin in 2010.
This release was prepared by management of the Company who take full responsibility for its contents.
Forward Looking Information: This news release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual events or results to vary materially from those discussed in such forward looking statements. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company with securities regulators.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.