Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

July 06, 2010 17:58 ET

Creston Moly Announces $3.0 Million Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE VIA US NEWSWIRE SERVICES

Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE:CMS) announces that it has arranged a non-brokered private placement (the "Private Placement") to raise up to $3,000,000 by the issuance of 16,666,666 common shares at a price of $0.18 per share.

The majority of the private placement will be allocated to certain strategic institutional investors, with the funds committed to advancing data collection in order to maintain the schedule for delivery of a definitive feasibility study of the El Creston molybdenum deposit in the 2nd quarter of 2011.

Certain directors and officers of the Company may acquire securities under the private placement.

This financing is subject to the approval of the TSX Venture Exchange. The Company anticipates closing of the Offering as soon as practicable subject to receipt of all necessary regulatory approvals.

About Creston Moly Corp.

Creston is a Canadian mineral exploration company focused on the development of its El Creston molybdenum deposit located in the state of Sonora, Mexico. The El Creston molybdenum deposit is Mexico's largest molybdenum deposit and contains the following Mineral Reserves and in-pit inferred resources at a 0.037% Mo equivalent* cut-off grade:

Category Tonnes
(000's)
Mo
(%)
lbs Mo
(000's)
Cu
(%)
lbs Cu
(000's)
           
Proven Reserves 44,736 0.079 78,024 0.053 52,217
Probable Reserves 101,968 0.076 171,924 0.047 106,614
           
Proven and probable reserves 146,705 0.077 249,948 0.049 158,831
           
In-pit Inferred Resources 8,718 0.065 12,464 0.063 12,158

*Mo-equivalent cut-off: Mo%+(Cu/7.5). 
**The reserves were completed by Mine Development Associates, Reno Nevada using block modeling of drill core assays.

In 2009 a NI 43-101 compliant Pre-Feasibility Study ("PFS"), was issued by M3 Engineering & Technology Corporation of Tucson, Arizona ("M3"). Using a base case scenario of $15/lb Mo and $1.75/lb Cu M3 determined that the El Creston molybdenum deposit has an after-tax Net Present Value ("NPV") at an 8% discount rate of USD$306.02 million and an Internal Rate of Return ("IRR") of 20.2%. Creston is currently conducting an optimization program, which includes drilling, to advance the El Creston molybdenum deposit towards completion of a feasibility study.

On Behalf of the Board of Directors
CRESTON MOLY CORP.

Per: D. Bruce McLeod

D. Bruce McLeod, President & CEO

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Creston does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Creston management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Creston to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Creston's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although Creston has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

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

  • Creston Moly Corp.
    Mr. Bruce McLeod
    President & CEO
    604-687-7545 or (888) 338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Chris Curran
    Investor Relations
    604-687-7545 or (888) 338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Ken MacDonald
    604-694-0005
    604-694-0005 (FAX)
    www.crestonmoly.com