Castillian Resources Corp.

Castillian Resources Corp.

July 20, 2005 09:49 ET

Castillian Initiates Transient Electromagnetic 'TEM' Geophysical Survey at the Mangabal Project in Brazil and Announces Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - July 20, 2005) - CASTILLIAN RESOURCES CORP. (TSX VENTURE:CT) has announced a financing of $1 million by way of non-brokered private placement, through the issuance of units priced at $0.35 per unit.

Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share for $0.50 for a period of 12 months from closing. A finder's fee of 10% of the gross proceeds of the financing will be paid. The private placement financing remains subject to regulatory approval.

Castillian, jointly with Falconbridge Limited, has initiated a ground Transient Electromagnetic (TEM) survey on the advanced targets of the Mangabal Project. The results will accurately determine drill-hole locations and orientation. Many of these targets have both geophysical and soil anomalies requiring only ground confirmation prior to drilling. The successful completion of this financing will allow for the delineation geophysical survey and subsequent diamond drill testing. In addition, exploration work is underway on other targets within the mafic / ultramafic complex in preparation for subsequent geophysical definition and drill testing.

Castillian President & C.E.O. John Buckle, P.Geo. commented, "Castillian's Mangabal project is a tremendous nickel-copper opportunity, and the addition of more cash in our bank will allow us to carry out further surveying and drilling. With the potential of mining-camp scale deposits at the Mangabal Project under a competent exploration team, I am very excited about the possibility of Castillian becoming a Nickel-Copper producer in the future."

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws an may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registrations is available.

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange. The company is focused on acquiring, exploring and developing Nickel-Copper, polymetallic and base metal deposits in Latin America. Inventories of base metals are diminishing at historical rates with a prognosis for ever increasing consumption. Although the Brazilian shield has potential for mining-camp scale base metal deposits, this region has rarely seen the application of modern exploration technology. Also largely overlooked, is the potential for volcanogenic massive sulphide and polymetallic deposits in the Andean Cordillera. Recently restructured, Castillian Resources has targeted these potential resources, commencing with the high-profile Mangabal Joint Venture with Falconbridge Brasil Ltda.

Contact Information

  • Castillian Resources Corp.
    John Buckle
    President & CEO
    (905) 517-6555
    Castillian Resources Corp.
    Julian Bharti
    Shareholder Communications
    (416) 861-5907
    (416) 861-8165 (FAX)