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Castle
Resources Inc. ("Castle" or the
"Company")
(TSX VENTURE:CRI)
is pleased to announce today that it has raised gross proceeds of $12,001,750
by way of a brokered private placement (the "Offering") through
Scotia Capital Inc., as lead agent, and Cormark
Securities Inc., Primary Capital Inc., and D&D Securities Inc.
(collectively, the "Agents").
Under the Offering the Company issued 19,675,000 common shares (each a "Shares") at a
purchase price of $0.61 per Share.
The
Agents received a cash commission of 6% of the gross proceeds raised through
the Agents under the Offering, and 1,180,500 compensation options (each a
"Compensation Option")
entitling them to acquire up to 1,180,500 Shares at a price of $0.61 per
Compensation Option.
Proceeds
from the Offering will be used for exploration and development of the
Company's Granduc property located near Stewart,
British Columbia, exploration and development of the Elmtree
Gold property in New Brunswick, and for general working capital purposes. All
securities issued pursuant to the Offering, including the Compensation
Options issued to the Agents, are subject to a four (4) month statutory hold
commencing from closing. The Offering is subject to TSX Venture Exchange
acceptance of requisite regulatory filings.
"With
this financing Castle is in an excellent position to aggressively drill and
explore the Granduc this year," said Mr. Mike Sylvestre, President & COO. "Based on positive
drill results from last year's campaign our objective remains to develop a
significant NI 43-101 copper and precious metals resource at the Granduc."
About
Castle Resources
Castle
Resources Inc. is a Toronto-based junior mineral exploration company focusing
on high-quality, advanced exploration projects. Management's goal is to
continue the redevelopment of the past producing Granduc
Copper Mine and begin new exploration activities; as well, management is
quickly advancing the Elmtree Gold Project in New
Brunswick toward feasibility in 2011. For more information please visit the
Castle Resources' website at www.castleresources.com.
Disclaimer
Certain
statements contained in this news release may contain forward-looking
information within the meaning of Canadian securities laws. Such
forward-looking information is identified by words such as
"estimates", "intends", "expects", "believes","may", "will" and
include, without limitation, statements regarding the company's plan of
business operations (including plans for progressing assets), estimates
regarding mineral resources, projections regarding mineralization and
projected expenditures. There can be no assurance that such statements will
prove to be accurate; actual results and future events could differ materially
from such statements. Factors that could cause actual results to differ
materially include, among others, metal prices, risks inherent in the mining
industry, financing risks, labour risks,
uncertainty of mineral resource estimates, equipment and supply risks, title
disputes, regulatory risks and environmental concerns. Most of these factors
are outside the control of the company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise required
by applicable securities statutes or regulation, the company expressly
disclaims any intent or obligation to update publicly forward-looking
information, whether as a result of new information, future events or
otherwise.
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.
For more
information, please contact
Castle Resources Inc.
Mike Sylvestre
President & COO
647-288-0296
mike@castleresources.com
or
Castle Resources Inc.
Lenny Foreht
VP Corporate Development
416-364-2266
lforeht@hotmail.com
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