Crown Minerals Inc.
TSX VENTURE : CWM

December 22, 2009 16:43 ET

Crown Minerals Inc. Announces Completion of $500,000 Non-Brokered Private Placement of Flow-Through Units

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2009) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES.

Crown Minerals Inc. ("Crown") (TSX VENTURE:CWM) is pleased to announce that it has successfully completed its previously announced $500,000 private placement (the "Private Placement") (see Crown's news release dated December 4, 2009). An aggregate of 3,333,334 units ("Units") were sold today to funds of the MineralFields Group at $0.15 per Unit for gross proceeds of $500,000.00. Each Unit is comprised of one flow-through common share and one-half of a flow-through common share purchase warrant. Each whole warrant (a "Warrant") entitles the holder to purchase one non-flow-through common share at any time within eighteen months after the Warrant issue date, at a price of $0.25.

Two finders received as compensation 7.6% cash commission in the aggregate and 316,666 finder's warrants, being 9.5% of the aggregate number of Units purchased under the Private Placement. Each finder's warrant entitles the holder to purchase for a period of eighteen (18) months one non-flow-through common share and one-half of a non-flow-through Warrant for a price of $0.15.

The gross proceeds to Crown from the Private Placement will be used to fund exploration expenses which qualify as "Canadian Exploration Expenses" (within the meaning of the Income Tax Act (Canada)) in connection with Crown's recently acquired gold properties in Ontario, including in Whitney and Deloro Townships near Timmins, Ontario, at the Stairs mine near Matachewan, Ontario and on Mackenzie Island near Red Lake, Ontario.

All the securities issued pursuant to this Private Placement are subject to a four (4) month hold period.

"We are very pleased to be entering into this relationship with MineralFields Group", said Stephen Dunn, President, Chief Executive Officer and Secretary of Crown. "This is an important milestone in the growth of Crown and we look forward to working with MineralFields Group as we develop our holdings in the Timmins and Matachewan districts in Ontario, and on Mackenzie Island near Red Lake, Ontario."

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares and the Warrants comprising the Units or issuable upon exercise of the Warrants and finder's warrants will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.

This Press Release contains forward-looking statements, including the use of proceeds of the Private Placement which may involve a number of risks and uncertainties. Actual events or results could differ materially from Crown's forward-looking statements and expectations herein.

Neither IIROC nor the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Crown Minerals Inc.
    Mr. Stephen Dunn
    President
    416-822-3343