Crown Gold Corporation Announces Completion of $1,500,000 Brokered Private Placement
NEWS RELEASE
For Immediate Release
Crown Gold Corporation Announces Completion of $1,500,000 Brokered Private Placement
Toronto, Ontario, Canada (October 29, 2010) – Crown Gold Corporation (“Crown”) (TSX- V: CWM) is pleased to announce that it has successfully completed today its previously announced $1,500,000 brokered private placement (the “Private Placement”) with MGI Securities Inc ("MGI") and Pope & Company ("Pope") (see Crown’s news release dated October 4, 2010). An aggregate of 15,000,000 units (“Units”) were sold at $0.10 per Unit for gross proceeds of $1,500,000. Each Unit is comprised of one common share of the Corporation (a “Common Share”) and one Common Share purchase warrant. Each whole warrant (a “Warrant”) entitles the holder to purchase one Common Share, at any time within 15 months after the Warrant issue date, at a price of $0.18.
MGI and Pope received cash commissions equal to 10% of the gross proceeds of the Private Placement and non transferable compensation options (the “Agent’s Compensation Options”) equal to 10% of the Units sold under the Private Placement. Each Agent’s Compensation Option entitles the holder to purchase, at any time for a period of 15 months following the issue date, one Unit at a price of $0.10.
The proceeds from the Private Placement will be used to continue exploration programs at Crown's property on McKenzie Island in Red Lake, Ontario and at Crown's Monte Cristo property in Nevada, as well as for general working capital purposes.
All the securities issued pursuant to this Private Placement are subject to a four (4) month hold period expiring March 1, 2011.
About MGI Securities and Pope and Company
MGI Securities Inc. is an integrated Canadian investment dealer offering professional wealth management solutions for individual investors, a comprehensive range of specialized services for institutional investors, and corporate finance advisory services for issuers, including mergers and acquisitions, equity underwritings, corporate restructuring, structured financings, market research, and business valuation services. MGI is based in Toronto, with additional offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is a member of IIROC and is a subsidiary of Jovian Capital Corporation (TSX:JOV). MGI has approximately $1.3 billion in client assets under administration.
Pope & Company Limited is a full service investment dealer established in 1962. Pope is a member of the Toronto Stock Exchange, Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Pope is an active financier of exploration and production companies in the mining and energy sectors, serving clients throughout the world.
This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of Crown. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expects", "expected to", "plans", "planned" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in Crown's management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.
For further information please contact: Mr. Stephen Dunn, President and Chief Executive Officer of Crown Gold Corporation by telephone: 416-822-3343 or by mail: 130 Adelaide Street West, Suite 2700, Toronto, Ontario M5H 3P5.