Central Resources Corp.
TSX VENTURE : CBC

Central Resources Corp.

December 10, 2009 08:00 ET

Central Announces Additional Appointments, Option Grants and Financing

VANCOUVER, BRITISH COLUBMIA--(Marketwire - Dec. 10, 2009) - Central Resources Corp. (TSX VENTURE:CBC) ("Central" or the "Company") is pleased to announce that Mr. Ken Carter has been appointed a director of the Company and that Mr. Jeffery Pontius has joined the Company's technical advisory board.

Appointments and Option Grants

Mr. Carter is a seasoned professional geoscientist having worked with Cominco Ltd. in North America, Europe, and the Middle East from 1970 to 1988. Between 1988 and 1991 he held the position of Director of Canadian Exploration for Echo Bay Mines Ltd. Since 1991, Mr. Carter has managed exploration programs for precious and base metal deposits and diamonds in a variety of geological environments.

Mr. Pontius is President and CEO of International Tower Hill Mines Ltd. With over 30 years geological experience, he possesses a distinguished track record of successful discovery which includes four precious metal deposits in North America. Mr. Pontius led the discovery and development team for the Cripple Creek Deposit in Colorado, which is operated by AngloGold Ashanti and contains over 15 million ounces of Gold. Additionally, he led the discovery work on two Nevada Gold Deposits and most recently the discovery of the Livengood Gold Deposit in Alaska, which now has a total resource of 12.5 million ounces of gold.

The Company has granted an aggregate of 250,000 stock options to officers, directors and consultants of the Company under the Company's Stock Option Plan, subject to regulatory approval. The options are exercisable at a price of $0.30 per common share, vest immediately, are subject to a four month hold period, and expire on December 10, 2014.

Financing

The Company also announces that it has arranged a non-brokered flow-through private placement financing of 2,000,000 shares at a price of $0.35 per share for gross proceeds of $700,000. The Company has agreed to pay Axemen Resource Capital Ltd. ("Axemen"), a limited market dealer, a 6% finder's fee with respect to subscribers found by Axemen. Axemen may elect to receive such fees in cash or stock at a deemed price equal to the financing price. The Company may pay finder's fees on the same terms as above, on the closing of the financing, to qualified finders. The above financing is subject to TSX Venture Exchange approval.

The proceeds of the financing will be used to continue the exploration program on the Company's Newman Todd gold property located in Red Lake, Ontario. Central has an option to earn a 60% interest in the property by incurring $6.5 million in exploration expenditures and issuing 1,250,000 shares to Redstar Gold Corp., by December 31, 2014.

About the Newman Todd Property

Central has recently completed a four hole diamond drill program on the Newman Todd property. Results are expected in January 2010.

Previous exploration programs by Redstar Gold Corp. on the Newman Todd property have outlined gold values within a silicified breccia zone that can be traced for at least two kilometres. Redstar has previously announced drill intercepts of up to 61.02 g/t gold over 1.0 meter within a wider zone of 14.22 g/t gold over 5.0 metres or 60.0 metres of 1.72 g/t gold in previous drill programs. The Newman Todd property has a very similar geologic setting to the major mines in the Red Lake camp in particular Goldcorp's Campbell and Red Lake mines. Similarities include proximity to a major structure, secondary northwest-southeast trending structures, proximity to a folded ultramafic body and association with a large Fe-carbonate alteration zone.

Peter Thiersch, P. Geo., M.Sc., a "Qualified Person" as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in this news release.

About Central Resources

Central Resources Corp. is a junior mineral exploration company created to leverage the extensive knowledge and expertise of a team of financial and resource industry professionals. The management team is committed to developing a successful junior resource company through the acquisition and exploration of properties of merit.

This news release may contain forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither 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 release.

Contact Information

  • Central Resources Corp.
    Paul Reynolds
    President and CEO
    778-327-6678
    or
    Central Resources Corp.
    Tim McNulty
    VP, Corporate Communications
    778-327-6678
    info@centralres.ca
    www.centralres.ca