VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2011) - Crazy Horse Resources Inc. (TSX VENTURE:CZH) (the "Company") is pleased to announce the completion of the strategic investment by Copper Development Corporation ("CDC") on a private placement basis of 6,666,667 common shares of the Company (the "Shares") at a price of $0.75 per Share for proceeds to the Company of C$5,000,000.
As a result of the private placement, CDC will hold approximately 11.8% of the Company's outstanding common shares. The Company has agreed to grant CDC the right to maintain such percentage shareholding through participation in future financings undertaken by the Company, for a period of five years subject to CDC continuing to meet certain minimum shareholding and investment requirements.
No finder's fee or commissions were paid in respect of the private placement.
The Shares will be subject to a four-month hold period in accordance with applicable Canadian securities laws that expires on November 5, 2011.
The proceeds of the private placement will be used to further develop the Company's Taysan Copper-Gold Porphyry Project in the Philippines.
Taysan Project
A National Instrument 43-101 compliant technical report by Mining Associates dated effective March 11, 2011 and entitled "Mineral Resource Estimate and Preliminary Economic Assessment Taysan Project" can be viewed under the Company's profile on SEDAR (www.sedar.com).
The Taysan Project contains a copper-gold porphyry deposit with an inferred resource, and is comprised of two mining exploration permits and three mining exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, and permit applications: EPA-IVI-108, EPA-IVI-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The Taysan Project hosts a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines. The Taysan Project is located in southern Luzon, Philippines in a well-developed mining province and readily accessible by road located 20km east of the provincial capital and deep water commercial port of Batangas City. The Company is currently conducting a feasibility study under the management of AMECMinproc Limited, which remains on track and on schedule.
ON BEHALF OF THE BOARD
Johan Raadsma, President, CEO and Secretary
This press release includes "forward-looking statements" including statements relating to completion of the proposed Offering and use of the offering proceeds, that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. There is no assurance that the Company will be successful in raising any or all of the private placement, or that the terms thereof will not materially change prior to closing. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
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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