Crescent Resources Corp.
TSX VENTURE : CRC

Crescent Resources Corp.

September 27, 2005 16:35 ET

Crescent Resources Raises $2.5 Million and Appoints New Chief Executive Officer

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 27, 2005) - Crescent Resources Corp. (TSX VENTURE:CRC) closed its oversubscribed non-brokered private placement of 7,075,000 units at a price of $0.35 per unit for gross proceeds of $2,476,250. Each unit consists of one common share and one common share purchase warrant, with each warrant entitling the subscriber to buy one additional common share in the capital of the Company at a price of $0.50 for the first year and $0.60 for the second year, for a period of two years until September 26, 2007. No finder's fees were payable in connection with the placement. The common shares issued, and any common shares issued pursuant to the exercise of share purchase warrants prior to January 28, 2006 are restricted from trading until January 28, 2006.

Proceeds of this private placement will be used for property costs, exploration and drilling of the Matupa Gold Project, general corporate purposes and the evaluation of other precious metals properties for possible acquisition.

Field work has recently started on the company's Matupa Gold Project located in northern Mato Grosso State, Brazil. This work consists of surveying earlier drill holes, establishing new grid lines and clearing rock outcrops around the old small-miner open-pit workings to aid the geological mapping and other surveys that will start shortly. Existing drill access roads will also be renovated and new drill access roads will be constructed.

A detailed review of the geology of the Matupa Gold Project and the existing drill core from the previous operator's drill programs will be undertaken by a consulting structural geologist in early October. The objective of this work will be to determine what controlled the emplacement of the widespread disseminated gold mineralization seen on the property which will assist in the planning of the Company's drilling program scheduled to commence later this year. Although prior drilling programs have intersected wide zones of gold mineralization on the Matupa property, the nature of the geological controls of this mineralization have not been firmly established. Management believes that a better understanding of the controls of mineralization will enhance the probability that the next phase of drilling will expand Rio Tinto's previously reported historic resource.

Michael Hopley has been appointed as the new President and Chief Executive Officer of Crescent Resources Corp. Rahoul Sharan will remain as a Director.

Crescent Resources is a new resource exploration and development company with a defined growth strategy of adding value through discovery and rapid project advancement through exploration. Management has a strong record of discovery, exploration and financing to development of several mining projects. The management team of Michael Hopley, Don Halliday, Rahoul Sharan and Doris Meyer has over 60 years cumulative experience in the mining and exploration business with companies such as Sunridge Gold Corp., Nevsun Resources Ltd., Bema Gold Corp. and Uranium Power Corp. The Company has 16.6 million common shares outstanding after this issue.

CRESCENT RESOURCES CORP.

Michael Hopley, President and Chief Executive Officer


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Contact Information

  • Crescent Resources Corp.
    Don Halliday
    Vice President Corporate Development
    (604) 899-1505