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TORONTO,
ONTARIO--(Marketwire - June 18, 2009) - CASTLE GOLD CORPORATION
("Castle Gold") (TSX VENTURE:CSG) is pleased to provide an
update in advance of the Company's Annual General Meeting from the
Mergers & Acquisitions Committee which has been leading a Strategic
Alternative Review ("SAR") process along with our financial
advisor. This SAR was announced in a press release on March 2, 2009.
The Committee has selected three expressions of interest to move
forward and allow these candidates to complete their final detailed due
diligence, including a review of our latest drill results and
metallurgical testing. These expressions of interest were the result of
an intensive multi-month process which began with a list of 38
potential candidates. The Committee hopes to receive final, binding
offers from these three selected candidates and plans to make a final
decision no later than July 10, 2009.
The process has been extremely involved with substantial interest from
multiple parties in the company's assets and its growth potential and
included the execution of twelve confidentiality agreements with
selected candidates, eight onsite technical due diligence reviews and
four reciprocal onsite technical due diligence reviews.
"Terms and conditions of any possible transaction with any of the
foregoing candidates, including price and transaction structure, have
not been finalized. There can be no assurance that, as a result of the
SAR and the foregoing activities, any offer will be made to or by
Castle Gold, that a mutually acceptable agreement with another party
will be reached, or that one will occur. If a mutually acceptable
agreement for a transaction is reached with another party, such
transaction would be subject to a number of closing conditions which
may or may not be satisfied."
James Mark
Plaxton, Chairman of the Board and M&A Committee of Castle Gold
Corp. Comments, "We began this process to help unlock the value
and growth potential of Castle Gold's assets. I am very pleased with
the results to date and the Board looks forward to making a final
decision early next month. It all comes down to maximising Shareholder
value relative to all alternatives in consideration of consummating a
win-win strategic transaction, so if we do not receive a final offer
that is consistent with our valuation of the company's assets, then we
plan to aggressively pursue an alternate aggressive organic growth
strategy through an expansion at El Castillo, the development of La
Fortuna, and acquisition of other Mexican gold projects (i.e. Castle
Gold as the Acquirer)."
Forward Looking Statements
Certain statements in this press release constitute
"forward-looking" statements that involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Castle Gold to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used in
this news release, words such as "plans", "hope"
and "expects" and similar expressions to the extent they
relate to Castle Gold are intended to identify forward-looking
statements. There is no assurance that any strategic transaction will
be completed. Unless required by applicable securities law, Castle Gold
does not assume any obligation to update forward-looking statements.
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with
projects focused in the America's. The Company owns a 100% interest in
the El Castillo gold mine in Mexico and a 50% interest in the El Sastre
gold mine in Guatemala. Castle Gold is also advancing exploration and
development work at its La Fortuna gold-silver-copper project in
Mexico.
---------------------------------------------------------------------------- TSX-V Trading Symbol: CSG Total Shares Outstanding: 75.3MM Fully Diluted: 82.8MM 52-Week Trading Range: C$0.15 - $0.71 ----------------------------------------------------------------------------
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
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