|June 12, 2006|
Crowflight Announces Private Placement Financing of up to $6 Million
|CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) is pleased to announce that it has appointed a syndicate of agents led by Orion Securities Inc. and including MGI Securities Inc. and Raymond James Ltd. to offer, on a "best efforts" basis up to 18,000,000 common shares of the Company which qualify as flow-through shares for the purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.30 for each Flow-Through Share for gross proceeds of up to $5,400,000. In addition, Crowflight has granted the agents an option to offer up to an additional 2,000,000 of Flow-Through Shares at a price of $0.30 per Flow-Through Share until 24 hours prior to the closing date.|
Proceeds from the offering will be used for exploration and development of the Bucko Nickel project and to fund follow-up drilling on the two recently announced new nickel discoveries located within three kilometres of the Bucko Deposit, in the Thompson Nickel Belt, Manitoba. The offering is subject to receipt of all necessary regulatory approvals. It is anticipated that closing of the offering will occur on or about June 21, 2006.
Crowflight has agreed to pay the agents a commission equal to 6% of the gross proceeds of the offering, payable in cash upon closing. The Company has also agreed to grant the agents broker warrants to acquire that number of non-flow-through common shares of the Company that is equal to 6% of the number of Flow-Through Shares sold pursuant to the offering, exercisable at a price of $0.30 per share until 18 months following the closing date.
Crowflight - The Base Metal Builder
Crowflight Minerals Inc. is a Canadian junior mining exploration and development company listed on the TSX Venture Exchange. The company is focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt ("TNB") and Sudbury Basin. The company currently owns and/or has under option approximately 600 square kilometres of exploration and development properties in Manitoba and Ontario.
In Manitoba, these properties include: (1) the Bucko Nickel Deposit; (2) an earn-in option with Falconbridge Limited on five highly prospective properties (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake) on the TNB South Project located within 30 kilometres of the Bucko Deposit; and (3) six additional properties (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake) located 100 kilometres to the north on the TNB North Project.
In the Sudbury Basin, these properties include: (1) the 100% owned AER Kidd Project adjacent to Inco's Totten Deposit (10.1 million tonnes grading 1.5% nickel, 2.0% copper and 4.8 g/t PGM's); (2) the 100% owned Peter's Roost Property, the subject of a recent joint venture agreement with Wallbridge Mining Co. Ltd.; and (3) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 kilometres south, and on-strike, with Falconbridge's Nickel Rim South Deposit (13.2 million tonnes grading 1.7% nickel, 3.5% copper and 4.1 g/t PGM's).
Further information is available on the Company's web site at www.crowflight.com.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements. The Company cautions investors that the projections for increases to the Indicated Resources are based on Inferred Resources. There is no certainty that these projections will be added to the Indicated Resources or that they will be economically viable.
For further information please contact:
Thomas Atkins, President and CEO
Bruce Korhonen, Investor Relations
Ascenta Capital Partners Inc.
Tel: 604-684-4743 Ext. 230
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