Crown Minerals Inc.

May 19, 2010 16:32 ET

Crown Signs Letters of Intent With Trelawney on Two Mineral Properties Near Chester Project

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - Crown Minerals Inc. ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce that it has signed letters of intent with Trelawney Mining and Exploration Inc ("Trelawney") on two mineral properties in close proximity to Trelawney's Chester Project in northern Ontario.

In the first agreement, Trelawney will purchase an 80% interest in Crown's Chester/Yeo property which is contiguous to and west of Trelawney's Chester Project. The property consists of 3 claims with 14 units located approximately 1 km west of Trelawney's newly-discovered Cote Lake deposit. Under the terms of the agreement, Trelawney will make a one-time payment of $120,000 to Crown and Crown will retain a 20% carried interest until the completion of a positive pre-feasibility study.

In the second agreement, Crown will be granted the option to earn a 50% interest in Trelawney's recently staked Benneweis property, east of the Chester Project. This property consists of 20 claims with 257 units located in Benneweis, Groves, Neville and St. Louis townships. Under the terms of this agreement, Crown will have to complete exploration expenditures of $2.5 million and issue 1.6 million Crown common shares to Trelawney over a period of 5 years to earn a 50% interest.

Both letters of intent are subject to execution of definitive agreements and all necessary regulatory, Board and other approvals.

Stephen Dunn, Crown's President and CEO commented, "We are pleased to create this partnership with Trelawney which will allow us to participate in the exploration potential of a substantial land package in close proximity to Trelawney's recent discoveries at Chester and Cote Lake."

Crown is exploring for gold and base metals in both Ontario and Nevada. For more information please see the Crown website at

Forward-looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond Crown's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or contents of this news release.

Contact Information

  • Crown Minerals Inc.
    Mr. Stephen Dunn
    President and CEO
    (416) 822-3343