Concerned Creston Shareholders

July 15, 2009 08:00 ET

Concerned Creston Shareholders Apply To OSC for Relief

Proposed Private Placement Will Further Dilute Shareholders and Creston Management Agreed to Coercive Break Fees in Merger Agreement

TORONTO, ONTARIO--(Marketwire - July 15, 2009) - Concerned Creston Shareholders have applied to the Ontario Securities Commission for relief from further dilution and management entrenchment manoeuvres.

Creston Moly Corp. (TSX VENTURE:CMS) ("Creston") has announced a private placement of up to 30,000,000 units at $0.10 per unit.

The Concerned Creston Shareholders have asked the Ontario Securities Commission to intervene on their behalf and stop Creston from issuing up to 30,000,000 common shares and 30,000,000 warrants by way of private placement in addition to the 53,000,000 shares to be issued connection with the proposed merger with Tenajon Resources Corp. ("Tenajon"). The Concerned Shareholders believe the private placement is tied to the proposed merger with Tenajon, and that Creston management intends to thwart the shareholder approval process. The Concerned Shareholders are asking the Ontario Securities Commission to stop the issuance of any additional Creston shares without the prior approval of the Tenajon transaction by Creston shareholders.

The Concerned Shareholders believe the private placement is a defensive tactics designed to entrench management and are part of the proposed merger with Tenajon. Creston shareholders will suffer enormous dilution.

Creston has entered into an Arrangement Agreement with Tenajon which contains a coercive Break Fee. In the event Creston shareholders do not approve the transaction with Tenajon, Creston must pay a Break Fee of $350,000 to Tenajon, even though Creston has not yet announced a date for the shareholders meeting.

All Creston shareholders are urged to make their displeasure known to management and to TSX Venture by e-mail, telephone call and letter.

Contact Information

  • Concerned Creston Shareholders
    Carl DiPlacido
    416-917-5039