VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2012) - Coronet Metals Inc. ("Coronet") (TSX VENTURE:CRF)(OTCQX:CORMF)(FRANKFURT:2CM) is pleased to announce the closing of the acquisition of 100% of the outstanding shares of White Caps Gold Mining Company, Inc. ("WCGM"). Coronet now controls the White Caps Gold Project located in the historic Manhattan mining district of south-central Nevada. WCGM owns the Manhattan Mill, 2,800 acres of patented and unpatented mining and millsite claims. There are historical references indicating up to 250,000 tonnes of gold-bearing tailings and dumps which Coronet believes might be economically re-processed. (These references are not NI 43-101 compliant and should not be relied on).
In addition, Coronet acquired other rights, titles and interests in the Manhattan Mining District from a WCGM shareholder.
This acquisition is in line with Coronet's strategy of acquiring precious metals mining projects which have the potential for both near-term cash flow and have significant exploration upside potential. Coronet believes that the Manhattan mill can be used to process additional gold materials from mining operations in the surrounding area. Coronet is evaluating other Manhattan area acquisitions which have the potential for near term cash flow and/or exploration upside potential.
The Manhattan Mining District
The Manhattan Mining District is one of the few remaining under developed, under explored, historic gold districts in Nevada with significant historic gold production. It is located just south of the Round Mountain mine, a joint venture between Kinross Gold Corporation and Barrick Gold Corporation. In 2011 the Round Mountain mine produced over 350,000 oz gold and contained proven and probable mineral reserves of 2.8 million oz gold1. Nevada is the largest gold producing state in the United States, and was recently ranked in a survey by the Fraser Institute as one of the 10 most attractive jurisdictions in the world for mineral exploration and development.
The White Caps Gold Project
The Manhattan Mill was operated by New Concept Mining and Western Mine Development from 1996‐2001 treating tailings, mine dumps, and gold ores. With the closing of this transaction, Coronet plans to:
- Re-permit the existing mill and tailings facilities. WCGM is preparing a Plan of Operations Permit Application and the permitting process is expected to take 10 to 16 months at an approximate cost of US$150,000.
- Refurbish and upgrade the existing mill to process 250 tonnes per day and build a new tailings impoundment.
- Commence gold production.
- Acquire additional mill feed from the surrounding area.
- Continue to consolidate the Manhattan Mining District and explore for a major gold deposit.
Details of Agreement
- Coronet purchased 100% of the outstanding shares of WCGM for US$630,000 cash and 6,428,862 shares of Coronet common shares. The Coronet shares will be subject to a four-month hold restriction.
- Coronet purchased other rights, titles and interests in the Manhattan Mining District for US$100,000 from a WCGM shareholder.
Mr. Theo van der Linde, President and CFO of Coronet states, "We are extremely pleased to have closed this transaction, adding another advanced-stage gold project to our stable. This acquisition puts Coronet a step closer to commence gold production and generate near-term cash flow. Nevada continues to welcome gold exploration and mining and we look forward to continued growth in this mining friendly state."
This news release contains certain forward‐looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward‐looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward‐looking statement, whether as a result of new information, future events or results, or any other occurrence.
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.