TORONTO, Jan. 31 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange),
SOURCES INC. (TRR-TSXV). Further to Citadel's announcement of
November 2, 2006, Citadel Gold Mines Inc. and Trelawney Resources Inc.
(formerly Terex Resources Inc.), announced today that they have entered into a
formal option agreement whereby Citadel can earn up to a 75% interest in the
Massey property located in Salter Township, Ontario, about 100 km west of
The property consists of about 2,000 acres covering three former
copper-producing mines: the Massey mine, the Hermina number 1 mine, and the
Hermina number 3 mine.
Citadel will have the right to earn an initial 51% interest in the Massey
property by issuing 1,150,000 common shares, by making cash payments to
Trelawney totalling $260,000 and by incurring an aggregate of $1,200,000 in
exploration and development expenditures on the property over five (5) years.
Citadel will have the right to earn a further 24% interest by completing a
On completion of Citadel's option, a joint venture will be formed between
Citadel and Trelawney on either a 51-49 or 75-25 basis, respectively, to
further develop the property.
Citadel and Trelawney are excited about the potential for the Massey
property and look forward to partnering to maximize this site's base metal
The statements used in this press release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's forward-looking
statements and expectations.
For further information:
For further information: John Sadowski, President, Citadel Gold Mines
Inc., Telephone: (416) 675-8379, Facsimile: (416) 675-8477; Wayne J. O'Connor,
President, Trelawney Resources Inc., Telephone: (416) 364-6420, Facsimile: