Coventry Resources Inc.
TSX VENTURE : CYY
ASX : CYY

Coventry Resources Inc.

April 28, 2014 09:01 ET

Coventry Resources Inc.: Chalice Gold Mines Deal Completed

HIGHLIGHTS

Chalice Gold Mines Deal Completed

- Chalice issued 46 million shares to acquire a 100% interest in Coventry's subsidiary companies holding the Cameron Gold Project, the West Cedartree assets, the Rainy River Project and the Ardeen Gold Project through a Plan of Arrangement.

- Coventry shareholders approved the Arrangement in January with 99.89% of the votes cast in favour of the Transaction.

- The record date for the transaction was the 4th of February with shares issued via a Return of Capital to shareholders of Coventry on a pro rata basis.

Corporate

- C$1million of cash on hand at the end of the quarter.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 28, 2014) - Coventry (TSX VENTURE:CYY)(ASX:CYY) and Chalice Gold Mines Limited ("Chalice") advised on 1 November that Chalice would issue 46 million shares under a Plan of Arrangement to acquire a 100% interest in Coventry's subsidiary companies holding the Cameron Gold Project, the West Cedartree assets, the Rainy River Project and the Ardeen Gold Project.

The Transaction done under the Plan of Arrangement received a favourable fairness opinion from Coventry's independent advisors Primary Capital Inc. along with the support of all the Board members of Coventry, and major shareholders Macquarie (on behalf of Macquarie Bank Limited) and Sun Valley Gold LLC (on behalf of Sun Valley Gold Master Fund Ltd) agreeing to vote in favour of the Transaction.

Coventry shareholders approved the Arrangement at a meeting held in Vancouver at 10am on 21 January 2014. The motion was carried on a poll with 39,849,393 (99.89%) votes cast in favour of the transaction.

Following satisfaction of the remaining conditions precedent contained within the Arrangement Agreement, Chalice issued 46 million Shares on the record date the 4th of February. The Shares were issued via a Return of Capital to shareholders of Coventry on a pro rata basis using a ratio of 0.5054346 Chalice Shares for every single Coventry share held.

Following the Chalice deal the Company will continue to focus on its Uncle Sam project in the United States and consider other potential exploration opportunities.

As announced on November 1, 2013 the Chalice Transaction was amended from a Merger to an outright sale of the Company's Ontario gold assets. As disclosed at the time this was a direct consequence of the previously disclosed contingent liability associated with a 2007 drilling contract in Paraguay, the subject of planned arbitration proceedings, remaining unresolved. Coventry's legal advice was that there was little merit to the claim. Coventry believed that it was in the best interest of Shareholders to proceed with the new arrangement and not deny shareholders the benefits of the planned Transaction with Chalice. Coventry continues to defend the claim, and will continue to deal with the remaining assets of the Company in the best interests of Shareholders. No resolution or progress has been made at this point with the arbitration process in Paraquay.

TENEMENTS

See Appendix 1 attached for a current tenements listing and the latest appendix 5B announced by the Company for current changes in interests in mining tenements during the quarter.

CORPORATE

During the quarter:

  • Mr Haynes, Mr Halliday, Mr Goddard and Mr Edwards stepped down from the Board.

ABOUT COVENTRY RESOURCES INC.

Coventry Resources Inc. is advancing the Uncle Sam project in the United States. The Company is led by a strong management team with the proven ability to explore, develop, finance and operate mining and exploration projects.

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.

Forward-Looking Statements

This news release may contain "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, forward-looking information"). Any forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, Coventry Resources Inc. ("Coventry") does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to completion of a Feasibility Study, completion of new resource estimates, construction or operation of a mine, mineral resource estimates, drill plans, planned work programs, future upgrading of mineral resources and expected outcomes. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.

Any forward-looking information contained in this news release is based on certain assumptions that Coventry believes are reasonable, including, with respect to any mineral resource estimates, the key assumptions and parameters on which such estimates are based, that the current price of and demand for gold will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approval required to conduct Coventry's planned exploration and development activities will be available on reasonable terms and that Coventry will not experience any material accident, labour dispute, or failure of equipment.

However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Coventry to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks and uncertainties relating to the actual results of exploration activities being different than anticipated, cost of labour increasing more than expected, cost of equipment or materials increasing more than expected, fluctuations in the price of gold and other commodities, currency fluctuations, mineral resources not being as estimated, unexpected variations in mineral resources, grade or recovery rates, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failing to obtain governmental or community approvals or financing. Although Coventry has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

Fast Facts TSX-V/ASX: CYY
Share price (28 April 2014) A$0.01
Shares on issue 91.01M
Options (C$0.12- C$5.00) 6.9M
Warrants (C$0.45/A$0.43) 9.4M
Market capitalisation ~ $0.9M

Major Shareholders

Sun Valley Gold Master Fund 15%
Macquarie Bank Limited 7%
Directors/Management 0.4%

Directors and Management

Steven Chadwick
Director, Interim President and CEO
+61 8 9324 1266
Nick Day
Director, CFO and Company Secretary
Robert Boaz
Non-Executive Director

Key Project

Uncle Same Project, 100%
Gold Exploration, Alaska

Appendix 1

TENEMENT SCHEDULE

Crescent Resources USA Inc.
Location: Township Tenure Number Tenure Type Interest
F005S008E05 US 1 Claim 100%
F005S008E05 US 2 Claim 100%
F005S008E05 US 3 Claim 100%
F005S008E05 US 4 Claim 100%
F005S008E08 US 5 Claim 100%
F005S008E08 US 6 Claim 100%
F005S008E08 US 7 Claim 100%
F005S008E08 US 8 Claim 100%
F005S008E17 US 9 Claim 100%
F005S008E17 US 10 Claim 100%
F005S008E05 US 11 Claim 100%
F005S008E05 US 12 Claim 100%
F005S008E05 US 13 Claim 100%
F005S008E05 US 14 Claim 100%
F005S008E08 US 15 Claim 100%
F005S008E08 US 16 Claim 100%
F005S008E08 US 17 Claim 100%
F005S008E08 US 18 Claim 100%
F005S008E17 US 19 Claim 100%
F005S008E17 US 20 Claim 100%
F005S008E06 US 21 Claim 100%
F005S008E06 US 22 Claim 100%
F005S008E06 US 23 Claim 100%
F005S008E06 US 24 Claim 100%
F005S008E07 US 25 Claim 100%
F005S008E07 US 26 Claim 100%
F005S008E07 US 27 Claim 100%
F005S008E07 US 28 Claim 100%
F005S008E18 US 29 Claim 100%
F005S008E18 US 30 Claim 100%
F005S008E06 US 35 Claim 100%
F005S008E06 US 36 Claim 100%
F005S008E06 US 37 Claim 100%
F005S008E06 US 38 Claim 100%
F005S008E07 US 39 Claim 100%
F005S008E07 US 40 Claim 100%
F005S008E07 US 41 Claim 100%
F005S008E07 US 42 Claim 100%
F005S008E18 US 43 Claim 100%
F005S008E18 US 44 Claim 100%
F005S008E18 US 45 Claim 100%
F005S008E06 US 55 Claim 100%
F005S008E06 US 56 Claim 100%
F005S008E06 US 57 Claim 100%
F005S008E06 US 58 Claim 100%
F005S008E07 US 59 Claim 100%
F005S008E07 US 60 Claim 100%
F005S008E07 US 61 Claim 100%
F005S008E07 US 62 Claim 100%
F005S008E18 US 63 Claim 100%
F005S008E18 US 64 Claim 100%
F005S008E18 US 65 Claim 100%
F005S008E06 US 75 Claim 100%
F005S008E06 US 76 Claim 100%
F005S008E06 US 77 Claim 100%
F005S008E06 US 78 Claim 100%
F005S008E07 US 79 Claim 100%
F005S008E07 US 80 Claim 100%
F005S008E07 US 81 Claim 100%
F005S008E07 US 82 Claim 100%
F005S007E13 US 83 Claim 100%
F005S007E13 US 84 Claim 100%
F005S007E13 US 85 Claim 100%
F005S007E01 US WEST 1 Claim 100%
F005S007E01 US WEST 2 Claim 100%
F005S007E01 US WEST 3 Claim 100%
F005S007E01 US WEST 4 Claim 100%
F005S007E12 US WEST 5 Claim 100%
F005S007E12 US WEST 6 Claim 100%
F005S007E12 US WEST 7 Claim 100%
F005S007E12 US WEST 8 Claim 100%
F005S007E13 US WEST 9 Claim 100%
F005S007E13 US WEST 10 Claim 100%
F005S007E13 US WEST 11 Claim 100%
F005S007E01 US WEST 21 Claim 100%
F005S007E01 US WEST 22 Claim 100%
F005S007E01 US WEST 23 Claim 100%
F005S007E01 US WEST 24 Claim 100%
F005S007E12 US WEST 25 Claim 100%
F005S007E12 US WEST 26 Claim 100%
F005S007E12 US WEST 27 Claim 100%
F005S007E12 US WEST 28 Claim 100%
F005S007E13 US WEST 29 Claim 100%
F005S007E13 US WEST 30 Claim 100%
F005S007E13 US WEST 31 Claim 100%
F005S007E01 US WEST 41 Claim 100%
F005S007E01 US WEST 42 Claim 100%
F005S007E01 US WEST 43 Claim 100%
F005S007E01 US WEST 44 Claim 100%
F005S007E12 US WEST 45 Claim 100%
F005S007E12 US WEST 46 Claim 100%
F005S007E12 US WEST 47 Claim 100%
F005S007E12 US WEST 48 Claim 100%
F005S007E13 US WEST 49 Claim 100%
F005S007E13 US WEST 50 Claim 100%
F005S007E13 US WEST 51 Claim 100%
F005S007E02 US WEST 61 Claim 100%
F005S007E02 US WEST 62 Claim 100%
F005S007E02 US WEST 63 Claim 100%
F005S007E02 US WEST 64 Claim 100%
F005S007E11 US WEST 65 Claim 100%
F005S007E11 US WEST 66 Claim 100%
F005S007E11 US WEST 67 Claim 100%
F005S007E11 US WEST 68 Claim 100%
F005S007E13 US WEST 69 Claim 100%
F005S007E13 US WEST 70 Claim 100%
F005S007E13 US WEST 71 Claim 100%
F005S007E02 US WEST 81 Claim 100%
F005S007E02 US WEST 82 Claim 100%
F005S007E02 US WEST 83 Claim 100%
F005S007E02 US WEST 84 Claim 100%
F005S007E11 US WEST 85 Claim 100%
F005S007E11 US WEST 86 Claim 100%
F005S007E11 US WEST 87 Claim 100%
F005S007E11 US WEST 88 Claim 100%
F005S007E14 US WEST 89 Claim 100%
F005S007E14 US WEST 90 Claim 100%
F005S007E14 US WEST 91 Claim 100%
F005S007E02 US WEST 93 Claim 100%
F005S007E02 US WEST 94 Claim 100%
F005S007E02 US WEST 95 Claim 100%
F005S007E02 US WEST 96 Claim 100%
F005S007E11 US WEST 97 Claim 100%
F005S007E11 US WEST 98 Claim 100%
F005S007E11 US WEST 99 Claim 100%
F005S007E11 US WEST 100 Claim 100%
F005S007E14 US WEST 101 Claim 100%
F005S007E14 US WEST 102 Claim 100%
F005S007E14 US WEST 103 Claim 100%
F004S008E32 US WEST 129 Claim 100%
F004S008E32 US WEST 130 Claim 100%
F004S008E32 US WEST 131 Claim 100%
F004S008E32 US WEST 132 Claim 100%
F004S008E32 US WEST 133 Claim 100%
F004S008E32 US WEST 134 Claim 100%
F004S008E32 US WEST 135 Claim 100%
F004S008E32 US WEST 136 Claim 100%
F004S008E32 US WEST 137 Claim 100%
F004S008E32 US WEST 138 Claim 100%
F004S008E32 US WEST 139 Claim 100%
F004S008E32 US WEST 140 Claim 100%
F004S008E32 US WEST 141 Claim 100%
F004S008E32 US WEST 142 Claim 100%
F004S008E32 US WEST 143 Claim 100%
F004S008E32 US WEST 144 Claim 100%
F004S008E30 US WEST 146 Claim 100%
F004S008E31 US WEST 147 Claim 100%
F004S008E31 US WEST 148 Claim 100%
F004S008E31 US WEST 149 Claim 100%
F004S008E31 US WEST 150 Claim 100%
F004S008E30 US WEST 152 Claim 100%
F004S008E31 US WEST 153 Claim 100%
F004S008E31 US WEST 154 Claim 100%
F004S008E31 US WEST 155 Claim 100%
F004S008E31 US WEST 156 Claim 100%
F004S008E30 US WEST 158 Claim 100%
F004S008E31 US WEST 159 Claim 100%
F004S008E31 US WEST 160 Claim 100%
F004S008E31 US WEST 161 Claim 100%
F004S008E31 US WEST 162 Claim 100%
F004S008E30 US WEST 164 Claim 100%
F004S008E31 US WEST 165 Claim 100%
F004S008E31 US WEST 166 Claim 100%
F004S008E31 US WEST 167 Claim 100%
F004S008E31 US WEST 168 Claim 100%
F004S007E36 US WEST 169 Claim 100%
F004S007E36 US WEST 170 Claim 100%
F004S007E36 US WEST 171 Claim 100%
F004S007E36 US WEST 172 Claim 100%
F004S007E36 US WEST 173 Claim 100%
F004S007E36 US WEST 174 Claim 100%
F004S007E36 US WEST 175 Claim 100%
F004S007E36 US WEST 176 Claim 100%
F004S007E36 US WEST 177 Claim 100%
F004S007E36 US WEST 178 Claim 100%
F004S007E36 US WEST 179 Claim 100%
F004S007E36 US WEST 180 Claim 100%
F004S007E36 US WEST 181 Claim 100%
F004S007E36 US WEST 182 Claim 100%
F004S007E36 US WEST 183 Claim 100%
F004S007E36 US WEST 184 Claim 100%
F004S007E35 US WEST 185 Claim 100%
F004S007E35 US WEST 186 Claim 100%
F004S007E35 US WEST 187 Claim 100%
F004S007E35 US 203 Claim 100%
F004S007E26 US 208 Claim 100%
F004S007E25 US 209 Claim 100%
F004S007E25 US 210 Claim 100%
F004S007E25 US 211 Claim 100%
F004S007E25 US 212 Claim 100%
F004S008E29 US 301 Claim 100%
F004S008E29 US 302 Claim 100%
F004S008E29 US 303 Claim 100%
F004S008E29 US 304 Claim 100%
F004S007E22 US 406 Claim 100%
F004S007E22 US 407 Claim 100%
F004S007E23 US 408 Claim 100%
F004S007E23 US 409 Claim 100%
F004S007E22 US 415 Claim 100%
F004S007E22 US 416 Claim 100%
F004S007E23 US 417 Claim 100%
F004S007E23 US 418 Claim 100%
F004S008E19 US 419 Claim 100%
F004S008E19 US 420 Claim 100%
F004S008E20 US 421 Claim 100%
F004S008E20 US 422 Claim 100%
F004S008E21 US 423 Claim 100%
F004S007E25 US 426 Claim 100%
F004S007E25 US 427 Claim 100%
F004S008E30 US 428 Claim 100%
F004S008E30 US 429 Claim 100%
F004S008E29 US 430 Claim 100%
F004S008E29 US 431 Claim 100%
F004S008E28 US 432 Claim 100%
F004S008E28 US 433 Claim 100%
F004S007E25 US 436 Claim 100%
F004S007E25 US 437 Claim 100%
F004S007E25 US 438 Claim 100%
F004S007E25 US 439 Claim 100%
F004S008E30 US 440 Claim 100%
F004S008E30 US 441 Claim 100%
F004S008E30 US 442 Claim 100%
F004S008E30 US 443 Claim 100%
F004S008E29 US 444 Claim 100%
F004S008E29 US 445 Claim 100%
F004S008E29 US 446 Claim 100%
F004S008E29 US 447 Claim 100%
F004S008E28 US 448 Claim 100%
F004S008E28 US 449 Claim 100%
F004S007E34 US 450 Claim 100%
F004S007E34 US 451 Claim 100%
F004S007E35 US 452 Claim 100%
F004S007E35 US 453 Claim 100%
F004S007E35 US 454 Claim 100%
F004S008E33 US 455 Claim 100%
F004S008E33 US 456 Claim 100%
F004S007E34 US 457 Claim 100%
F004S007E34 US 458 Claim 100%
F004S007E35 US 459 Claim 100%
F004S007E35 US 460 Claim 100%
F004S007E35 US 461 Claim 100%
F004S008E33 US 462 Claim 100%
F004S008E33 US 463 Claim 100%
F005S007E03 US 464 Claim 100%
F005S007E03 US 465 Claim 100%
F005S007E02 US 466 Claim 100%
F005S007E03 US 467 Claim 100%
F005S007E03 US 468 Claim 100%
F005S007E02 US 469 Claim 100%
F005S007E10 US 471 Claim 100%
F005S007E10 US 472 Claim 100%
F005S007E11 US 473 Claim 100%
F005S007E10 US 475 Claim 100%
F005S007E10 US 476 Claim 100%
F005S007E11 US 477 Claim 100%
F005S007E15 US 479 Claim 100%
F005S007E15 US 480 Claim 100%
F005S007E14 US 481 Claim 100%
F005S007E15 US 483 Claim 100%
F005S007E15 US 484 Claim 100%
F005S007E14 US 485 Claim 100%
F005S007E22 US 487 Claim 100%
F005S007E22 US 488 Claim 100%
F005S007E23 US 489 Claim 100%
F005S007E22 US 491 Claim 100%
F005S007E22 US 492 Claim 100%
F005S007E23 US 493 Claim 100%

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