Cream Minerals Ltd. (TSXV -- CMA) ("Cream" or the
"Company") is pleased to announce that, subject to regulatory
approval, it has entered into an agreement (the "Agreement") with
W. S. Ferreira Ltd. (the "Optionor") to acquire 100% interest in
and to the Grand Nickel Project, being the Cedar 1, MB7355 and MEL 324B
(collectively, the "Property"), located in the Thompson Nickel
Belt, approximately 40 kilometres north-west of the town of Grand Rapids,
Manitoba. The Property is located 90 kilometers south west of the Minago
Nickel deposit of Victory Nickel Inc.
As reported by W.S. Ferreira Ltd., the Property contains an electromagnetic
conductor within a large magnetic anomaly. A diamond drill hole (GR-2-83) drilled by
Granges Exploration Ltd. in 1983 intersected over 600 feet of ultramafic
rocks with significant intersections including: 0.48% Nickel over a core
length of 8 feet and 0.45% Nickel over a core length of 10 feet. True width
of the intersections is not presently known. Cream is planning an airborne
electromagnetic and magnetic survey using state of the Art Technology
followed by diamond drilling in the New Year. The Property covers 20 square
miles in size.
Cream can earn its interest in and to the Property by making payments to
the Option or totaling $100,000 and issuing 200,000 common shares over a
48-month period from the date of regulatory approval. Cream must also incur
exploration expenditures on the Property totaling $5,000 within one year
following the date of regulatory approval, $10,000 cumulative prior to the
second anniversary of regulatory approval, $15,000 cumulative prior to the
third anniversary of regulatory approval, and $20,000 cumulative prior to
the fourth anniversary of regulatory approval. During the first year of the
Agreement, Cream will pay $5,000 and issue 50,000 common shares to the
Optionor upon receipt of regulatory approval and $10,000 and an additional
50,000 common shares 12 months following the date of regulatory approval.
Upon fulfilling the obligations set out above, Cream will have earned a
100% right, title and interest in and to the Property subject only to a
2.0% Net Smelter Return royalty ("NSR") payable to the Optionor
from the production of gold, silver and all base metals and other minerals
from the Property. Cream shall have the right to reduce the NSR to 1.0% by
the payment of $1,000,000 to the Optionor at any time up to and including
the commencement of commercial production.
All shares issued in relation to the Agreement will be subject to a hold
period of four months plus one day from the date of each issuance.
For further information on the Company's projects, visit www.creamminerals.com.
Frank A. Lang, BA, MA, P.Eng.
President and CEO
For further information, please contact:
Robert Paul, Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
CHF Investor Relations
Phone: (416) 868-1079, Ext. 229
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The TSX Venture Exchange has not reviewed and does not
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News Release. This release has been prepared by management and no
regulatory authority has approved or disapproved the information contained
Cautionary Language and Forward Looking
This press release may contain "forward-looking statements",
which are subject to various risks and uncertainties that could cause
actual results and future events to differ materially from those expressed
or implied by such statements. Investors are cautioned that such statements
are not guarantees of future performance and results. Risks and
uncertainties about the Company's business are more fully discussed in the
Company's disclosure documents filed from time to time with the Canadian