Coniagas Resources Limited
TSX : CNY

Coniagas Resources Limited

May 20, 2009 14:11 ET

Coniagas Resources Announces Private Placement and Acquisition of Additional Lithium Properties

TORONTO, ONTARIO--(Marketwire - May 20, 2009) - Coniagas Resources Limited (the "Company") (TSX VENTURE:CNY) is pleased to announce that it has entered into two separate agreements to acquire a 100% interest in two lithium properties located in James Bay, Quebec. The acquisitions are incremental to the Company's land package in the James Bay area, where the Company's Cyr property is located.

Under the first agreement between the Company and Dianor Resources Inc. ("Dianor") (TSX VENTURE:DOR) the Company will acquire a 100% interest in any lithium on the Ekomiak 6 property in consideration for the granting to Dianor of a 1.5% net smelter return royalty on any lithium produced from the property. The Ekomiak 6 property is located in James Bay, Quebec and is comprised of 196 claims covering an area of approximately 1247.43 hectares.

The second agreement is a letter of intent between the Company and Jacques Frigon and Gerard Robert, as optionors, which allows the Company to acquire a 100% interest in the Frigon property through an initial payment of $32,000 and 100,000 common shares ("Common Shares") of the Company and four annual payments of $25,000 and 100,000 Common Shares. In addition, the optionors will be granted a 1.5% net smelter return royalty on the Frigon property with the Company being able to purchase one-third of the royalty (0.5%) for $500,000. The Frigon property is located in James Bay, Quebec and is comprised of 5 claims covering of approximately 92.7 hectares. The Frigon property is contiguous to the Company's Cyr property and contains lithium bearing pegmatite structures.

The Company is also pleased to announce a non-brokered private placement of up to 3,076,924 flow-through units at a price of $0.65 per flow-through unit and 4,250,000 non flow-through units of the Company at a price of $0.50 per non flow-through unit for gross proceeds of up to $4.125 million (the "Offering"). Each flow-through unit is comprised of one flow-through common share and one-half of one warrant, with each whole warrant exercisable into a non flow-through common share for a period of one year at an exercise price of $0.85. Each non flow-through unit is comprised of one non flow-through common share and one warrant, with each warrant exercisable into a non flow-through common share for a period of one year at an exercise price of $0.75.

The shares comprising the flow-through units will be "flow-through shares" under the Income Tax Act (Canada), and the proceeds raised from the sale of the flow-though units will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)) related to the exploration programs of the Company. The remaining proceeds of the Offering will be used for exploration work on the Company's mineral properties and general working capital.

A finder's fee may be payable through the issuance of warrants and cash, in accordance with the policies of the TSX Venture Exchange. Completion of the Offering is subject to receipt of TSX Venture Exchange approval. The securities offered pursuant to the Offering will be subject to a four month hold period.

The technical aspects of this press release has been reviewed by James McCann, P. Geo, M.Sc.A, in his personal capacity as qualified person under the guidelines of National Instrument 43-101.

Completion of the property acquisitions is subject to regulatory approval, including the approval of the TSX Venture Exchange.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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