Crescent Resources Corp.
TSX VENTURE : CRC

Crescent Resources Corp.

January 06, 2011 17:56 ET

Crescent Resources Completes Reorganization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2011) - Crescent Resources Corp. (TSX VENTURE:CRC) ("Crescent" or the "Company") is pleased to announce that it has received TSX Venture Exchange approval to complete all of the remaining series of transactions first announced on October 13, 2010. A technical report entitled Uncle Sam Property, Yukon-Tanana Terrane, East Central Alaska dated November 8, 2010 prepared by Dr. Karsten Eden is now posted on the Company's profile on www.sedar.com.

Crescent today issued 5,000,000 Units at a price of $0.20 for proceeds of $1,000,000 pursuant to a non brokered private placement. Each Unit comprised one common share and one-half of one common share purchase warrants with each whole warrant entitling the holder to purchase one common share at a purchase price of $0.35 up to and including January 6, 2012. The common shares issued and any common shares issued pursuant to the exercise of share purchase warrants are restricted from trading through the TSX Venture Exchange until May 7, 2011. 

On December 15, 2010 Crescent executed a definitive agreement (the "Option") with Millrock Resources Inc. ("Millrock") to formalize the option granted by Millrock to the Company to acquire a 100% interest in Millrock's rights to the Uncle Sam gold exploration property located 75 kilometers southeast of Fairbanks, Alaska. Pursuant to the terms of the Option, Crescent has today paid Millrock US$75,000 and issued Millrock 1,583,281 common shares and has issued an arm's length finder 200,000 common shares.

Finally, Crescent repaid a director the $101,663.56 loan borrowed in October 2010 including interest of $1,663.56 and today issued that director 100,000 bonus shares in connection with the provision of the loan, as allowed under the policies of the Exchange.

Since December 2010, in connection with the acquisition of the Uncle Sam property, Crescent consolidated its shares on a 4:1 basis settled certain debt with shares, executed the Option, paid a finder's fee in by the issue of 200,000 common shares of the Company and close a non-brokered part and parcel private placement financing to raise $1,000,000.

Michael Hopley, President and CEO of Crescent stated that, "This transaction allows the Company to proceed with the exploration of an exciting gold project in a favorable mining jurisdiction. Past drill results combined with very large geochemical anomalies provide an ideal geological setting for the potential discovery of a large new gold deposit. We expect there will be a greater focus on exploration in Alaska in 2011 as a number of significant new gold discoveries are being made across the border in the geologically similar Yukon Territory. Crescent will continue to focus on building a portfolio of gold projects in Alaska."

The Property

The Uncle Sam Gold Property is located 75 kilometers southeast of the city of Fairbanks and 20 kilometers north of the Richardson Highway. The project is an intrusion related gold target hosted in a similar age of intrusive rocks to those which host the Pogo Gold Mine in east-central Alaska approximately 60 kilometers to the east of Uncle Sam. The Pogo Mine was discovered in the mid 1990's and reportedly hosts over 5 million ounces of gold. An extensive exploration data package provided to Millrock by a former operator indicates that the Uncle Sam project consists of extensive anomalous areas defined by surface gold geochemistry and, 18 individual drill intersections of greater than 1.0 g/t gold over drilled widths ranging from 3 to 25 meters including 22.31 meters grading 3.2 g/t gold, including 10.6 meters averaging 6.1 g/t gold.

The Uncle Sam property was previously explored in the 1990s by Kennecott, Kiska Metals and Midas Gold. Geophysical surveys have identified two intrusive bodies with associated gold mineralization. As a result of the prior exploration work, numerous drill-ready targets exist on the Uncle Sam claim block. 

The Property consists of 194 State of Alaska mining claims covering a total area of 3,131 hectares. Neighboring claims are owned by Great American Exploration (Gamex) and Stoneboy (a subsidiary of Sumitomo). Millrock has the option to earn a 100% interest in the Property by paying a total of US$200,000, spending US$2,700,000 on exploration, and issuing one million Millrock shares. The purchase may be accelerated at any point by making any remaining cash payment, share issuance and a bonus share issuance of 500,000 Millrock shares. A 2% over-riding royalty is payable to International Royalty Corporation.

The technical information in this news release was reviewed by Michael Hopley, Crescent's President and CEO, a Qualified Person as defined in NI 43-101.

CRESCENT RESOURCES CORP.

Michael Hopley, President and Chief Executive Officer

"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."

Contact Information