Crown Minerals Inc.
TSX VENTURE : CWM

November 25, 2009 09:00 ET

Crown Minerals Options Additional Patented Gold Exploration Claims in Timmins District

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2009) - Crown Minerals Inc. ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce that it has entered into an option agreement with Gowest Amalgamated Resources Ltd ("Gowest") (TSX VENTURE:GWA) to acquire a 100% interest in 5 patented claims in Whitney Township near Timmins, Ontario, subject to TSX Venture Exchange approval.

The property is located 1 kilometer northwest of the Hallnor mine which was the richest mine in the Timmins area having produced 1.7 million ounces of gold at a recovered rate of 0.4 oz/short ton. The property is adjacent to the 4 claims recently optioned by Crown from another vendor, and gives Crown a 137 hectare parcel in the midst of 20 past producing gold mines.

In order to exercise the option, Crown has agreed to pay $20,000 in cash and issue 750,000 shares and 750,000 warrants to Gowest, then incur $400,000 in exploration expenditures in the period ending December 31, 2010. Each warrant will entitle Gowest to purchase one common share of Crown for $0.15 within the first six months after date of issue, for $0.20 within the 2nd six months after date of issue, and for $0.25 in the 2nd year after date of issue. Gowest will retain a 2% net smelter returns royalty when the gold price is $950 per ounce or less, and 3% when the gold price is greater than $950 per ounce. Crown has the right to purchase 1% of this royalty by paying Gowest $1,000,000 and then a further right to reduce the royalty to a 1% net smelter returns royalty regardless of the price of gold by paying Gowest another $1,000,000. Gowest shall maintain and hold a minimum 1.0% NSR at all times.

Geophysical surveys are presently being completed on these properties to establish targets for a drilling program to begin as soon as possible.

Crown is exploring for gold and base metals in both Ontario and Nevada. For more information please see the Crown website at www.crownmin.com.

This release was prepared by management of the Company who take full responsibility for its contents.

Forward Looking Information: This news release contains or refers to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown Minerals believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond Crown Minerals' ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements, including that results of the metallurgical test work encouraging the examination of the economics of open-pit mining at relatively large throughput volumes, may not be positive or conclusive. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown Minerals disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown Minerals believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.

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

Contact Information

  • Crown Minerals Inc.
    Mr. Stephen Dunn
    President and CEO
    (416) 822-3343
    or
    Gowest Amalgamated Resources Ltd.
    Mr. Greg Romain
    President and CEO
    (416) 804-9912