TORONTO, Oct. 28 /CNW/ - Crown Minerals Inc. ("Crown" or the "Company") (TSX Venture: CWM ) is pleased to announce that it has made the initial payments to the vendor of patented claims covering three (3) gold exploration properties near Timmins, Ontario and one (1) gold exploration property near Red Lake, Ontario in accordance with the Option Agreement announced by Crown in its press release dated October 8, 2009. These payments consisted of $20,000 in cash and 1,500,000 shares of Crown.
TSX Venture Exchange approval for the transaction has been received. Crown must spend $1,000,000 on exploration work on the properties over the next 3 years in order to earn a 100% interest in all 4 properties (subject only to a 3% net smelter return royalty, one half of which may be purchased for $1,000,000).
Crown is also pleased to announce that exploration work has started on 3 of the 4 properties with the objective of defining drill targets for a winter drilling program.
The properties located near Timmins are in Whitney, Deloro and Shaw Townships. The Whitney property is 1 km northwest of the Hallnor mine which was the richest mine in the Timmins area having produced 1.7 million ounces of gold at a recovered rate of 0.4 oz/short ton. The Deloro property is 4 km southwest of the Buffalo-Ankerite mine and 1km southeast of the Nabob mine.
The property located near Red Lake is on Mackenzie Island and is approx 2 km from the Gold Eagle deposit recently purchased by Goldcorp for $1.5 billion.
Crown is exploring for gold and base metals in both Ontario and Nevada. For more information please see the Crown website at www.crownmin.com.
This release was prepared by management of the Company who take full
responsibility for its contents. The TSX has not reviewed and does not
accept responsibility for the adequacy or accuracy of this news release.
Forward Looking Information: This news release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual events or results to vary materially from those discussed in such forward-looking statements. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company with securities regulators.
SOURCE CROWN MINERALS INC.
For further information: For further information: Mr. Stephen Dunn, President and CEO, Crown Minerals Inc., (416) 822-3343