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

Crescent Gold Limited

March 25, 2007 20:48 ET

Crescent Receives A$120m Support for Growth

PERTH, AUSTRALIA--(CCNMatthews - March 25, 2007) - Crescent Gold Limited ("Crescent") (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) is pleased to announce that its future growth strategy is to be backed by a strategic alliance with Deutsche Bank AG (acting through its London branch) ("DB"). The strategic alliance, arranged by Capstone Capital, is via a private placement to DB (or a member of its group) of 315,789,474 ordinary shares in Crescent at A$0.38 cents per share for A$120m cash. Following the placement, DB will have a voting interest in Crescent of 51.75% on a fully diluted basis.

The proceeds of the placement will be used to advance exploration and development activities on Crescent's Laverton Gold Project and to accelerate broader growth strategies. The alliance will enable Crescent to benefit from DB's broad global platform, access to capital and further growth opportunities.

The placement is subject, amongst other conditions, to DB's satisfactory completion of due diligence and both parties obtaining various regulatory and other approvals, including the approval of Crescent's shareholders, OSC, TSX, ASIC and ASX.

The Board of Directors recommend that shareholders accept the offer by or on behalf of DB to invest A$120m for the issue of 315,789,474 ordinary shares at $0.38 cents per share. The conditions to the offer which need to be satisfied are as set out in the copy of Crescent's invitation to DB to participate in the placement annexed to this announcement.

Crescent anticipates distributing shareholder documentation in relation to the placement, including the timing of the extraordinary general meeting which will be required for approval of the placement, in April.

Information on Crescent Gold Limited and technical reports on the Laverton Gold Project can be found on the company's website www.crescentgold.com.

Regards

CRESCENT GOLD LIMITED

Andrew Haythorpe, Managing Director

Julian Tambyrajah, CFO & Company Secretary



Share Information
ASX Share Price: A$0.38
Issued Shares: 249.2m
Market Cap: A$94.7m
Options unlisted: 56.7m

Fully Diluted Basis
Shares: 305.9m
Cash on dilution: A$12.7m

Resources
Indicated: 0.95m ozs
20.1mt
1.5g/t
Inferred: 0.48m ozs
10.4mt
1.4g/t

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

Resource
Market Cap/oz: A$66/oz

Reserve
Market Cap/oz: A$237/oz


Contact Information

  • Crescent Gold Limited - in Australia
    Hayley Patton
    +61 8 9322 5833
    +61 8 9322 5866 (FAX)
    or
    Crescent Gold Limited - in Canada
    Renee Brickner
    (604) 687-0072
    (604) 687-4770 (FAX)
    Email: info@crescentgold.com
    Website: www.crescentgold.com