|February 20, 2008|
Crowflight Options AER Kidd Property in Sudbury; Provides Additional Debt Facility Details
|CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) today announces that it has entered into an option agreement (the "Agreement") with a private Ontario company (the "Optionor") in respect of the AER Kidd Property (the "Property") near Sudbury, Ontario. |
Pursuant to the Agreement, the Optionor can earn up to a 50% interest in the Property upon the satisfaction of the following conditions: payment to Crowflight of $85,000 upon execution of the Agreement, assuming all future advance royalty payments due in respect of the Property, and incurring a minimum of $5.0 million in exploration expenditures on the Property by December 31, 2009. The Agreement also provides that Optionor may earn an additional 20% interest in the Property by incurring additional expenditures on the Property of $7.0 million prior to December 31, 2013 and continuing to make all royalty payments due and payable prior to the expenditure of the entire $7.0 million. Upon earning a 50% interest in the Property, Crowflight and Optionor shall enter into a joint venture in respect of the Property.
Mike Hoffman, Crowflight's President and CEO commented: "By optioning AER Kidd, we are leveraging the value of our large Manitoba and Ontario land position while still maintaining an interest in the property. We feel there is more value for our shareholders at this time by concentrating our expansion efforts in the Thompson Nickel Belt area."
The Optionor has agreed that it will not acquire any interest in any property in the Province of Manitoba that has potential nickel mineralization for a period of two years from the date of the Option Agreement. The Option Agreement remains conditional upon receipt of all necessary approvals, including approval from the TSX Venture Exchange, if necessary, and from the beneficial owners of the Property from whom Crowflight has obtained an option to earn an interest in the Property.
Further to the press release dated February 13, 2008 regarding the closing of the $55 million debt facility finance from RMB Resources, Crowflight wishes to clarify that the exercise price of the warrants is $0.6435 per warrant.
Further to enquiries from investors, Crowflight would also like to clarify the metal price protection requirements of the recent debt financing. As part of the RMB loan agreement, it is necessary for Crowflight to put in place a metal price protection program for a portion of the Bucko Mine's production over the life of the loan. The minimum required price protection is approximately 30% of production over the first four years of commercial mine production. Crowflight is currently reviewing the options available for implementing this program. Crowflight may increase the percentage of production included in this program depending on metal prices, metal price forecasts and general economic conditions.
Crowflight Minerals -- Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX-V: CML) is a Canadian junior mining exploration and development company focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt and Sudbury Basin. The Company currently owns and/or has under option approximately 800 square kilometres of exploration and development properties in Manitoba and Ontario.
Crowflight's priority is to bring the Bucko Nickel deposit located near Wabowden, Manitoba into production by mid-2008.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's business activities and plans, the impact and benefits of the AER Kidd option and receipt of regulatory approval. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Further information is available on the Company's website at www.crowflight.com or contact:
President and CEO
Tel: (416) 861-2964
Manager, Investor and Public Relations
Tel: (416) 861-5803
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