Crescent Gold Limited
ASX : CRE
TSX : CRA
FRANKFURT : CRE5

Crescent Gold Limited

May 09, 2008 00:19 ET

Crescent Gold Limited: Project Loan Facility Repaid

Crescent Substantially Debt Free

PERTH, WESTERN AUSTRALIA--(Marketwire - May 9, 2008) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) -

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

The Board has resolved to take advantage of the downturn in the gold price to repay its Project Loan Facility (including a gold loan) with Investec ("Investec Bank Australia Limited").

The loan facility at inception in October 2006 was a $20m gold loan and $5m cash loan and additionally a bond (guarantee) facility of $4m. The Company has repaid both the gold loan and cash loan leaving a cash backed bond facility with Investec. The release from the loan facility frees the Company to mine and process additional ore from minor pits and stock piles not part of the previously bank approved life of mine plan. The company has assessed this ore as economic.

The close out amount (principal and interest) of the gold loan (after repayments to date) was a cost of $17,901,709 and the cash loan $3,632,878. All security over the Laverton Gold Project will be released.

The Company wishes at this point to also restate its hedge book which was incorrectly reported in the Quarterly Report for the period ended 31 March 2008.

The actual mark to market on Crescent's hedge book as at 31 March 2008 was:-



A$ (12,103,626) Sold Gold Forwards 57,075 oz @ $860 May 08 to Oct 09
A$ 12,850,417 Bought Call Options 57,075 oz @ $860 May 08 to Oct 09
A$ 292,552 Bought Put Options 39,700 oz @ $850 Apr 08 to Oct 09
A$ 1,382,150 Bought Diesel Fuel Caps 41,010 bbl @ $71.55US Apr 08 to
Dec 08


Total: A$ $2,421,493 in the money to Crescent.

The Company has no exposure to committed gold and retains downside protection at $860 and $850 per ounce.

Further information relating to Crescent Gold can be viewed at www.sedar.com or on the Company's website at www.crescentgold.com.

Regards

Crescent Gold Limited

Roland Hill, Managing Director

Julian Tambyrajah, CFO & Company Secretary

Further information on Crescent Gold Limited and technical reports on the Laverton Gold Project and all aspects of the Company's activities can be found on the company's website www.crescentgold.com.



SHARE INFORMATION
ASX Share Price: A$0.25
Issued Shares: 589.8m
Market Cap: A$147.5m
Options unlisted: 30.2m

FULLY DILUTED BASIS
Shares: 620.0m

RESOURCES
Indicated: 0.97m ozs
21.3mt
1.5g/t

Inferred: 0.49m ozs
10.5mt
1.4g/t

RESERVES
Probable: 0.40m ozs
7.6mt
1.7g/t

RESOURCE
Market Cap/oz: A$101/oz
EV / oz: A$42/oz

RESERVE
Market Cap/oz: A$373/oz
EV / oz: A$156/oz


ABN 49 087 360 996

Contact Information

  • Crescent Gold Limited - in Australia
    Kathleen O'Shea
    +61 8 6380 7100
    +61 8 6380 7199 (FAX)
    or
    Crescent Gold Limited - in Canada
    Renee Brickner
    (604) 802-6806
    Email: info@crescentgold.com
    Website: www.crescentgold.com