|October 14, 2009|
Crowflight Closes Second Tranche of Kingplace Private Placement Financing
|CROWFLIGHT MINERALS INC. ("Crowflight" or the "Company") (TSX: CML) announces today that it has closed the second tranche of its previously announced private placement financing with Kingplace Enterprises Limited ("Kingplace") for gross proceeds of approximately Cdn$8,816,695. Pursuant to the second tranche, Crowflight has issued 35,266,779 common shares of the Company at a price of $0.25 per share. The primary intended use of the proceeds from the financing will be the continued development of the Bucko Lake Project and the balance for general corporate purposes. |
Kingplace is a private British Virgin Island company controlled by Chinese businessman, Shaofeng Ge. Kingplace is seeking strategic investments in mining opportunities. Kingplace approached the Company though Hebei Wenfeng Iron and Steel Co., Ltd. ("Hebei Wenfeng"), a significant Chinese steel producing company. Hebei Wenfeng initially approached Crowflight to express its interest in potentially making either an offer to acquire the outstanding shares of Crowflight or a strategic investment in Crowflight. Following initial discussions, it was determined that this strategic investment would be made by Kingplace. Crowflight understands that, while Kingplace and Hebei Wenfeng are not affiliated entities, they may act jointly or in concert with each other from time to time in respect of investments, which may in the future include further investments in Crowflight. The Crowflight Board of Directors continues to review its strategic alternatives.
Crowflight Minerals -- Canada's Newest Nickel Producer
Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that is producing nickel at the Bucko Lake Nickel Mine near Wabowden, Manitoba. Crowflight declared commercial production at Bucko in the second quarter of 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
Cautionary Note on Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the closing of the financing on the terms proposed; the stated use of proceeds; the Company's development potential and timetable of the Company's properties, including the Bucko Lake Project; the future price of nickel and other minerals; the timing and amount of estimated future production; capital expenditures; mining or processing issues; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bucko Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the probability of realizing such estimates that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during production; timing and availability of external financing on acceptable terms; changes in project parameters as plans continue to be refined; future prices of minerals, particularly nickel; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Further information is available on the Company's website at www.crowflight.com or contact:
President and CEO
Tel: (416) 861-5893
Manager, Investor and Public Relations
Tel: (416) 861-5803
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