Coronation Minerals Inc.

May 18, 2006 17:48 ET

Coronation Minerals Inc. Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - Coronation Minerals Inc. (TSX VENTURE:CMV) (the "Company") is pleased to announce that it has closed the previously announced $2,000,000 non-brokered private placement. The private placement consisted of 3,112,000 "flow-through" common shares of the Company (the "Flow-Through Shares") at a price of $0.28 per Flow-Through Share and 4,030,857 units (that are not flow-through) of the Company (the "Units") at a price of $0.28 per Unit. Each Unit consists of one common share of the Company and one share purchase warrant. Each whole share purchase warrant may be exercised to acquire one common share of the Company at a price of $0.40 for a period of 24 months, provided that if after 180 days following the closing of the private placement, the closing price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $0.80 for 20 consecutive trading days, then the expiry date of the share purchase warrants shall automatically accelerate to the date which is 30 days following the date on which a press release is issued by the Company announcing the accelerated expiry date of the share purchase warrants, without any further notification to the warrant holders. The securities issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange final approval. The Company will pay a finder's fee of $9,968 for certain securities subscribed for under the offering.

The Company intends to use the gross proceeds from the sale of the Flow-Through Shares for the exploration program of its Wellgreen Property and the proceeds from the sale of the Units for exploration, working capital and general corporate purposes.

The Company has also entered into a drilling contract for up to 10,000 meters of HQ core on its Yukon, Wellgreen Property. The Company will focus on drilling and bringing historical reserves up to National Instrument 43-101 ("NI 43-101") standards as well as testing newly defined exploration targets.

Coronation Minerals Inc. is a Canadian based exploration and development company. The Company presently controls and holds both the Wellgreen Property, Yukon Territory and the Coppermine River Project, Nunavut Territory. Both of these projects are described as Copper-Nickel-Platinum-Palladium prospects.

The Wellgreen Property is located 317 kilometers north-west of Whitehorse, just 10 kilometers off the Alaska highway. Significant surface and underground work has been carried out on the property between the initial discovery in 1952 and limited mining in 1972 and 1973 by Hudson Bay Mining Company Limited. Three zones of Copper-Nickel-Platinum-Palladium-Cobalt-Gold-Silver have been outlined on the property. Probable and possible reserves are calculated to be 50.03 million tonnes grading 0.35% copper, 0.36% nickel, 0.54grams/tonne platinum and 0.34 grams/tonne palladium (Preliminary Feasibility Study, Watts, Griffis and McQuat Limited, April 21, 1989.) Caution should be used when evaluating these reserves as they were calculated prior to NI 43-101 existing.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Coronation Minerals Inc.
    Peter W. Holmes, C.E.O.
    (520) 240-5306
    141 Adelaide Street West, Suite 301
    Toronto, Ontario M5H 3L5