Cream Minerals Ltd.
OTC Bulletin Board : CRMXF
TSX VENTURE : CMA
FRANKFURT : DFL

Cream Minerals Ltd.

April 13, 2010 20:33 ET

Cream Minerals Ltd. Completes Closing of Non-Brokered Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2010) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

Cream Minerals Ltd. (TSX VENTURE:CMA)(OTCBB:CRMXF)(FRANKFURT:DFL) ("Cream" or the "Company") is pleased to announce that it has completed a previously announced non-brokered private placement financing.

A total of 22,963,214 non-flow though units (the "Units") were issued at a price of $0.07 per Unit for gross proceeds of $1,607,424.98. The financing was oversubscribed by $207,424.98.

Each Unit is comprised of one common share in the capital of Cream and one non-transferable share purchase warrant (the "Warrant"). Each Warrant entitles the holder to purchase one additional common share (the "Warrant Share") of Cream for a period of 24 months at the exercise price of $0.10 per Warrant Share for a period of 12 months from the date of issue of the Warrant and at a price of $0.15 per Warrant Share for the remaining 12 month period.

Compensation was paid to certain eligible arms-length parties (the "Finders"), where such Finders arranged for subscribers to the private placement in an amount equal to 10% of the total proceeds raised from the sale of the Units to subscribers introduced by the Finders, and payable at the election of the Finders in cash or units of the Company (the "Finder's Units") or a combination thereof. A cash commission of $59,185.00 was paid, and a total of 144,000 Finder's Units were issued. The Finder's Units have the same terms as the Units.

If the Company's common shares trade at or above $0.30 per share for 10 consecutive trading days, the Company may, at its discretion, accelerate the expiration of the Warrants (and including the warrants forming part of the Finder's Units) by providing notice in writing to the holders of such securities, whereby such Warrants will expire within 30 days from the date of such written notice.

The net proceeds from the sale of the Units shall be used for the further exploration and development of the Company's projects in Mexico and Canada and for working capital.

Mr. Frank A. Lang, a director and the Chairman of the Company, has acquired 5,100,000 Units in the private placement for the subscription price of $357,000.

Prior to the transaction, Mr. Lang had ownership and control over 18,182,598 common shares of the Company, as well as warrants for the purchase of an additional 4,735,000 common shares of the Company and options for the purchase of an additional 370,000 common shares, collectively representing approximately 28.10% of the Company's issued and outstanding shares on a non-diluted basis, or 33.35% of the issued and outstanding shares on a partially-diluted basis assuming exercise of the warrants and options.

After giving effect to the above acquisition of the Units, Frank Lang beneficially owns or controls a total of 23,282,598 common shares of the Company and 9,835,000 warrants (including the warrants forming part of the Units acquired) and options, representing 26.55% of the Company's issued and outstanding shares on a non-diluted basis, or 34.21% of the Company's issued and outstanding shares calculated on a partially-diluted basis assuming exercise of the warrants and options.

Frank Lang acquired the Units for investment purposes. Mr. Lang has no present intention to acquire further securities of the Company, although he may, in the future, acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances of market conditions warrant.

A copy of the Early Warning Report being filed with the applicable securities regulators regarding the transaction will be available on SEDAR (www.sedar.com). A copy of the Early Warning Report and further information may be obtained by contacting Frank Lang at (604) 687-4622.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Cream Minerals Ltd.

Michael E. O'Connor

Frank A. Lang

For more information on the Company, investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.creamminerals.com.

U.S. 20-F Registration: 000-29870

Neither the 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

  • Cream Minerals Ltd.
    Frank A. Lang, BA, MA, P.Eng.
    Chairman
    (604) 687-4622 or Toll Free: 1-888-267-1400
    or
    Cream Minerals Ltd.
    Michael E. O'Connor
    President & CEO
    (604) 687-4622 or Toll Free: 1-888-267-1400
    or
    Cream Minerals
    Robert Paul
    Investor Relations
    (604) 687-4622 or Toll Free: 1-888-267-1400
    (604) 687-4212 (FAX)
    info@creamminerals.com
    www.creamminerals.com