Cenit Corporation

Cenit Corporation

June 24, 2011 15:44 ET

Cenit Completes Change of Business and $2.7 Million Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - June 24, 2011) -


Cenit Corporation (the "Company") (TSX VENTURE:CNT) has completed its change of business transaction to a Tier 2 resources issuer ("Change of Business") and non-brokered private placement (the "Offering") previously announced on April 29, 2011. The Change of Business, which was approved by shareholders of the Company by way of written consents in May, 2011, includes the closing of the Offering and an agreement to acquire 50% of the Batchawana Bay Copper Property (the "Property"). The Company's filing statement, dated April 29, 2011, option agreement with respect to the Property ("Option Agreement") and NI 43-101 compliant technical report on the Property, dated February 12, 2011, may be accessed on the Company's SEDAR profile at www.sedar.com.

Private Placement

The Offering consisted of the sale 4,936,700 flow-through units ("FT Units") at $0.15 per FT Unit and 19,564,000 hard-dollar units ("HD Units") at $0.10 per HD Unit for gross proceeds of $2,696,905. Each FT Unit consists of one common share in the capital stock of the Company ("Common Share") issued on a flow-through basis and one-half (½) of one Common Share purchase warrant ("FT Warrant"). Each HD Unit consists of one Common Share and one-half (½) of one Common Share purchase warrant ("HD Warrant"). Each whole FT Warrant entitles the holder to purchase one Common Share at a price of $0.30 for a period of 24 months from the date of issuance and each whole HD Warrant entitles the holder to purchase one Common Share at a price of $0.20 for a period of 24 months from the date of issuance. All Common Shares, FT Warrants and HD Warrants issued pursuant to the Offering are subject to a four-month and one day statutory hold period.

In conjunction with the Offering, certain finders (the "Finders") received fees comprised of $52,508.80, 1,007,650 finder warrants (the "Finder Warrants") and 541,012 HD Units. Each Finder Warrant entitles the holder to purchase one Common Share on a non-flow-through basis at a price of $0.20 for a period of 24 months from the date of issuance. The Finder Warrants and HD Units issued to the Finders are also subject to a four-month and one day statutory hold period.

Upon the closing of the Change of Business, Offering and the Rivière Doré claims acquisition (as further described below), the current number of issued and outstanding Common Shares of the Company is 60,554,269. The Common Shares will resume trading on the TSX Venture Exchange on or around June 28, 2011 under the symbol "CNT".

Batchawana Bay Copper Property

The Company has also completed its Option Agreement with First Minerals Exploration Ltd. ("FMEL"), a private Ontario company, to acquire an undivided 50% right to title and interest in the Property which included an initial issuance of 1,000,000 Common Shares. A further issuance of Common Shares equal to $75,000 and $100,000 will be due on the 12 and 24 month anniversary of the execution of the Option Agreement, respectively. The Property is comprised of 39 unpatented mineral claims located approximately 85 kilometres northwest of Sault Ste. Marie, Ontario.

The Property includes the past-producing Coppercorp Mine that operated from 1965 to 1972, milling approximately one million tons of ore and producing about 23 million pounds of copper, 200,000 ounces of silver and 2,000 ounces of gold. The Coppercorp Mine was an underground mine that produced from mineralized vein systems along a strike length of 4.2 kilometers and to a depth of 160 meters. Since the Coppercorp Mine was reopened for staking in 2002, several companies have carried out exploration and identified the potential for iron oxide copper-gold (IOCG) deposits. Features that make the prospective for an IOCG type deposit include: the proximity to the mid-Proterozoic Mid-Continental Rift; the Keweenawan basalts as a potential source of a significant amount of copper; the presence of iron oxides; numerous faults and dilation along structures; widespread copper mineralization; a large regional aeromagnetic anomaly; and, gold and silver associated with the copper mineralization. The Company intends to continue the exploration activity for IOCG type deposits that was previously initiated.

The technical information in this press release on the Batchawana Bay Copper Property has been reviewed and approved by Howard Coates, P. Geol. who is as a "Qualified Person" under National Instrument 43-101.

Rivière Doré Claims

The Company is also pleased to announce that it has closed its agreement with Mundiregina Resources Inc. ("Mundiregina") to acquire 120 claims in the Rivière Doré area located 85 kilometres southeast of Val d'Or Quebec by issuing 1,500,000 Common Shares and paying $30,000 to Mundiregina. The claims are contiguous with or completely enveloped by Cartier Resources Inc. and Copper One Corp.'s joint venture on the Rivière Doré property where initial surface work has returned significant values for copper, nickel, gold and platinum group elements.

The technical information in this press release on the Rivière Doré property has been reviewed and approved by Jared Beebe, a Professional Geologist, who is as a Qualified Person under National Instrument 43-101.

Board of Directors

The new board of directors for the Company will include: J. Birks Bovaird, Paul Millar, Marcus Arnold, Bob Leinster and Judy Baker. Mr. Bovaird is the Chairman of Energy Fuels Inc. and holds the designation of ICD.D from the Institute of Corporate Directors. Mr. Millar has over 25 years of international real estate and finance experience and is the President of York London Holdings. Mr. Arnold is the President of Euro-Bancorp and a Principal of Euromart Realty and is a director of Capstock Financial Inc. Mr. Leinster, Director and CFO, is a member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants, and has extensive experience in the areas of corporate valuations, litigation support, mergers & acquisitions and divestures. Ms. Baker, President and CEO, has 20 years of experience in the mining and mineral exploration sector including equity analysis, fund management, and junior exploration and mining company activity.

CAUTIONARY STATEMENT: These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward- looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. Please see our public filings at www.sedar.comfor further information.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements".

Contact Information