Castle Resources Inc.
TSX VENTURE : CRI

March 07, 2008 17:36 ET

Castle Resources Inc. Announces Private Placement With MineralFields Group

TORONTO, ONTARIO--(Marketwire - March 7, 2008) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Castle Resources Inc. ("Castle" or the "Company")(TSX VENTURE:CRI) is pleased to announce a non-brokered private placement (the "Flow-Through Private Placement') of 3,750,000 Flow-Through Units of Castle at a price of $0.40 per unit to be issued on a "flow-through" basis under the Income Tax Act (Canada) for total proceeds of up to $1,500,000 has been arranged with MineralFields Group.

Each Flow-Through Unit will consist of one common share (the "Common Shares") to be issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Flow-Through Shares") and one half of one common share purchase warrant of Castle (the "Flow-Through Unit Warrants"). Each whole Flow-Through Unit Warrant has a term of 18 months (the "Term") and will entitle the holder to purchase one Common Share at a price of $0.60 per share during the Term.

"We are very pleased to commence our relationship with MineralFields Group", said Stephen Shefsky, Castle's President and CEO. "This is an important milestone in the growth of Castle and we look forward to working with MineralFields Group as we develop our holdings both in Zacatecas, Mexico and the Legends of Cobalt Corporation acquisition in Cobalt, Ontario."

Castle is also pleased to announce a second private placement (the "Private Placement") of up to 5,000,000 units of Castle (the "Units") at a price of $0.30 per Unit for total proceeds of up to $1,500,000. A finder's fee may be paid in conjunction with the Private Placement.

Each Unit will consist of one Common Share and one half of one Common Share purchase unit (the "Unit Warrant"). Each whole Unit Warrant has a term of 18 months and will entitle the holder to purchase one Common Share at a price of $0.45 per share during the 18 month term.

The net proceeds of the Flow-Through Private Placement and Private Placement will be used to finance Castle's to be acquired project located in Cobalt, Ontario and its continued exploration program in Zacatecas, Mexico. The Flow-Through Private Placement and Private Placement are subject to approval by the TSX Venture Exchange. All securities issued pursuant to the Flow-Through Private Placement and Private Placement will be subject to a four month hold period.

About Castle

Castle recently signed a Letter of Intent to acquire rights to a majority land position within the Cobalt Ontario Silver Camp, one of the prolific silver mining camps in the Cobalt region.

- Historic Cobalt Mining Camp produced more than 445 million oz silver, 45 million lbs cobalt

- District-scale exploration opportunity on previously unconsolidated 3,083 ha land package

- Near-term potential for mine rehabilitation, tailings production and additional acquisitions

In addition, Castle is focusing on high-quality advanced exploration projects in Mexico. The Company's initial focus is on silver exploration and development in Zacatecas, Mexico, a prolific silver camp in Mexico. Management's goal is to quickly advance current projects and to seek additional opportunities to continue to add value for shareholders.

Amount MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, 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. 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) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect the financial results is included in documents filed from time to time with Canadian securities regulatory authorities by the Company.

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release.

Contact Information

  • Castle Resources Inc.
    Stephen Shefsky
    President and CEO
    (416) 366-4200
    (416) 366-4201 (FAX)