Crescent Gold Limited
TSX : CRA
ASX : CRE
FRANKFURT : CZ8

Crescent Gold Limited

May 29, 2011 21:33 ET

Crescent Completes Successful A$8.84 Million Capital Raising

PERTH, WESTERN AUSTRALIA--(Marketwire - May 29, 2011) -Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CZ8) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Gold producer, Crescent Gold Limited, has raised A$8 million in convertible debt. Due to overwhelming demand a further A$844,000 was raised through a share placement using the Company's existing 15% capacity.

The issue, managed by Oracle Securities, has been placed with sophisticated and professional investors and was closed heavily oversubscribed.

Convertible Note

Crescent Gold has finalised an A$8m Convertible Note facility to sophisticated investors. The Convertible Note facility has a maturity date of 30 June 2012, a 7% coupon rate, and is convertible into ordinary fully paid shares at the lower of $0.05 or 85% of the 5 day VWAP prior to conversion with one option for every two shares subscribed for.

Key Terms of the Convertible Notes

  1. Issued at a Face Value of 5 cents.
  2. Interest Rate of 7% per annum until redeemed or converted.
  3. The Maturity Date is 30 June 2012.
  4. The Notes are convertible at any time before maturity with the conversion price being the lower of $0.05 per share or 85% of 5 day VWAP prior to receipt of conversion notice, with one option for every two shares subscribed for.

In accordance with ASX Listing rule 7.1 part of the Convertible Note facility will be subject to shareholder approval.

Equity Funding

Crescent Gold is also pleased to announce it has successfully completed a placement of 16.88 million shares at an issue price of A$0.05 per share to raise a further A$844,000. The Company received very strong support from sophisticated investors for the equity placement.

The combined funds raised will be used for development programmes in the Company's Laverton region of Western Australia and for general working capital requirements.

The combined funds raised will be used for development programmes in the Company's Laverton region of Western Australia, the costs of the security issues, and for general working capital requirements.

Mark Tory, Crescent Gold's Managing Director stated:

"This funding agreement demonstrates the strong support from investors for Crescent's gold production operations and gold development and exploration operations in the Laverton region of WA. The Company has rebounded from a difficult start to the year operationally, to be on track to exceed its previously forecast quarterly equivalent gold production for the June 2011 quarter.

The Company is progressing well with negotiating a new long-term financing facility to fund further capital development requirements of new open pits in the regions."

NOTICE UNDER SECTION 708A (5) (c) of the Australian Corporations Act 2001

Crescent Gold Limited ACN 087 360 996 (the "Company") gives this notice pursuant to Section 708A(5)(e) of the Corporations Act.

That the shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act in reliance on S708A(5)(c) of the Corporations Act 2001.

The Company, as at the date of this notice, has complied with:

  1. the provisions of Chapter 2M of the Corporations Act as they apply to the Company
  2. Section 674 of the Corporations Act 2001.

There is no excluded information for the purposes of Sections 708A(7) and (8) of the Corporations Act 2001.

ABOUT CRESCENT GOLD

Crescent Gold Limited is a Top 10 listed Australian gold producer and explorer based in Perth, Western Australia. With a primary focus on gold mining and exploration, the Company is actively advancing its flagship asset, the Laverton Gold Project, located 250km northeast of Kalgoorlie in Western Australia. Crescent maintains a dominant land position of more than 1,400km2 of highly prospective tenements in a world recognised and well endowed mineralised geological domain. With 30Mt of Measured, Indicated and Inferred Mineral Resources that contain more than 2.1Moz of gold, and a Probable Ore Reserve position of 445,000 ounces (both as at 30 June 2010), Crescent has a plan to carry on building its presence in the Laverton district. The Company plans to continue exploration and development to grow its gold reserve and resource base, and to further leverage its production base to grow reserves, production, cash flow and earnings.

FORWARD LOOKING STATEMENT

This discussion and analysis contains certain forward-looking statements. These include statements about our expectations, beliefs, intentions or strategies for the future, and are indicated by words such as "budget", "anticipate", "intent", "believe", "estimate", "forecast", "expect", and similar words. While all forward-looking statements reflect our current views with respect to future events, they are subject to certain risks and uncertainties. Actual results may differ materially from those projected in these statements for a number of factors, including those which are described in the Corporation's periodic filings with securities regulatory authorities. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update or revise them, except in accordance with applicable securities laws, readers should not place undue reliance on forward-looking statements. Additional information related to the Company is available for review at sedar.com or on the Company's website at www.crescentgold.com.


ASX Code: CRE
TSX Code: CRA
FFT Code: CZ8


SHARE INFORMATION
ASX Share Price:A$0.053
Issued Shares:1,100.8m
Market Cap:A$58.3m

Unlisted options:
143.6m
Convertible notes: 160.0m
ABN 49 087 360 996

Contact Information