Greencastle Resources Ltd.

Greencastle Resources Ltd.

February 19, 2009 07:00 ET

Greencastle Undertaking Strategic Review of Assets

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2009) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle," or the "Company,") is undertaking a strategic review of the Company's assets. More specifically, the review will consider scenarios designed to unlock value in Greencastle's gold exploration portfolio. Greencastle's four wholly-owned gold projects are located on the Battle Mountain - Eureka mineral trend of Carlin-type gold deposits in Nevada, one of the most prolific gold trends in the world. This highly productive regional trend hosts multi-million ounce gold deposits such as Barrick's Cortez area projects at Pipeline and the nearby discovery at Cortez Hills.

In commenting on the asset review, Anthony Roodenburg, CEO, made the following statement: "Greencastle's market capitalization is less than $5 million while we have approximately $5.5 million in cash and remain cash flow positive. This suggests that the market is assigning no value to the Company's gold assets or revenue streams. In 2006, our shares traded at more than four times current prices as we assembled our Nevada portfolio. At that time we had a limited cash position and cash flows from oil and gas were just beginning.

With the increasing momentum in the bullion market, we are beginning to see renewed investor interest in gold companies. Although I wouldn't characterize this as a bull market for junior gold companies, there is a better tone shaping up, and this has prompted us to assess our options. The options being considered include, but are not limited to: sale of the gold assets, joint ventures, adding new gold projects to complement and build the portfolio and corporate restructuring of assets including a possible spin out of the gold projects."

Greencastle also reports that the Company, through a series of public transactions, has acquired 362,000 common shares of Vistior Capital Ltd. (TSX VENTURE:VCL.P), representing 12% of the basic issued and outstanding common shares of Vistior. These transactions were made for investment purposes, and Greencastle may increase or decrease its investment in Vistior, depending on market conditions or any other relevant factor through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company relies on litigation protection for forward looking statements.

No Stock Exchange has reviewed nor accepted responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Greencastle Resources Ltd.
    Anthony Roodenburg
    (416) 367-4571