Crescent Gold Assured of Sales Rights of 100,000 ozs at AU$750/oz
Crescent Gold (ASX: CRE)(PNK: CEDGF) has purchased the right, but not the obligation, to sell 100,000 ozs of gold at A$750/oz in March 2008.
"This is an effective 2 year insurance policy. Crescent Gold retains 100% of the upside on all ounces, but has protected the downside risk for the Laverton Gold Project." Managing Director, Andrew Haythorpe said.
The purchase has been funded with a A$3.75m loan at 7.75% pa from NM Rothschild (Australia), following extensive due diligence by the bank on Crescent Gold's Laverton Gold Project.
"This is a milestone in Crescent Gold's development. It places us in a great position to negotiate favourable project finance and commence gold production. We have the support of Rothschild, a bank renowned for its specialist expertise in funding gold projects, and this further confirms our confidence in the Project." Mr Haythorpe said.
The loan is secured against the put options, but not the Laverton Gold Project. Crescent Gold retains full flexibility in arranging its project finance to restart gold production. Loan repayment is scheduled with equal instalments on 31 July 2007, 31 August 2007 and 30 September 2007.
About CRESCENT GOLD LIMITED: Crescent Gold Limited is a WA based gold mining company. It owns the 1 million ton per annum Barnicoat Treatment Plant and a gold resource base of approximately 900,000 ozs. Laverton is located 250km northeast of Kalgoorlie in the Western Australian Goldfields. The company has spent the past 2 years reviewing the available data and a feasibility study is well advanced. The aim of the study is to recommence profitable gold production in 2005.
Crescent Gold has selected 2 projects in the Chinese provinces of Xinjiang and Inner Mongolia for detailed evaluation. The company has negotiated Joint Ventures and applied for business licenses. Both are considered to be prospective for world class gold and gold copper deposits.
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