Coronet Metals Inc. Closes Acquisition of 100% of White Caps Gold
Mining Company Inc.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/31/12 -- Coronet
Metals Inc. ("Coronet") (TSX VENTURE:CRF)(OTCQX:CORMF)(FRANKFURT:2CM)
is pleased to announce the closing of the acquisition of 100% of the
outstanding shares of White Caps Gold Mining Company, Inc. ("WCGM").
Coronet now controls the White Caps Gold Project located in the
historic Manhattan mining district of south-central Nevada. WCGM owns
the Manhattan Mill, 2,800 acres of patented and unpatented mining and
millsite claims. There are historical references indicating up to
250,000 tonnes of gold-bearing tailings and dumps which Coronet
believes might be economically re-processed. (These references are
not NI 43-101 compliant and should not be relied on).
In addition, Coronet acquired other rights, titles and interests in
the Manhattan Mining District from a WCGM shareholder.
This acquisition is in line with Coronet's strategy of acquiring
precious metals mining projects which have the potential for both
near-term cash flow and have significant exploration upside
potential. Coronet believes that the Manhattan mill can be used to
process additional gold materials from mining operations in the
surrounding area. Coronet is evaluating other Manhattan area
acquisitions which have the potential for near term cash flow and/or
exploration upside potential.
The Manhattan Mining District
The Manhattan Mining District is one of the few remaining under
developed, under explored, historic gold districts in Nevada with
significant historic gold production. It is located just south of the
Round Mountain mine, a joint venture between Kinross Gold Corporation
and Barrick Gold Corporation. In 2011 the Round Mountain mine
produced over 350,000 oz gold and contained proven and probable
mineral reserves of 2.8 million oz gold(1). Nevada is the largest
gold producing state in the United States, and was recently ranked in
a survey by the Fraser Institute as one of the 10 most attractive
jurisdictions in the world for mineral exploration and development.
The White Caps Gold Project
The Manhattan Mill was operated by New Concept Mining and Western
Mine Development from 1996-2001 treating tailings, mine dumps, and
gold ores. With the closing of this transaction, Coronet plans to:
-- Re-permit the existing mill and tailings facilities. WCGM is preparing a
Plan of Operations Permit Application and the permitting process is
expected to take 10 to 16 months at an approximate cost of US$150,000.
-- Refurbish and upgrade the existing mill to process 250 tonnes per day
and build a new tailings impoundment.
-- Commence gold production.
-- Acquire additional mill feed from the surrounding area.
-- Continue to consolidate the Manhattan Mining District and explore for a
major gold deposit.
Details of Agreement
-- Coronet purchased 100% of the outstanding shares of WCGM for US$630,000
cash and 6,428,862 shares of Coronet common shares. The Coronet shares
will be subject to a four-month hold restriction.
-- Coronet purchased other rights, titles and interests in the Manhattan
Mining District for US$100,000 from a WCGM shareholder.
Mr. Theo van der Linde, President and CFO of Coronet states, "We are
extremely pleased to have closed this transaction, adding another
advanced-stage gold project to our stable. This acquisition puts
Coronet a step closer to commence gold production and generate
near-term cash flow. Nevada continues to welcome gold exploration and
mining and we look forward to continued growth in this mining
This news release contains certain forward-looking statements, and
such statements involve risks and uncertainties. The results or
events predicted may differ materially from actual results or events.
Any forward-looking statement speaks only as of the date of this news
release. Except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results, or any other occurrence.
Neither the TSX Venture Exchange nor its regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Coronet Metals Inc.
Theo van der Linde
President and CFO
+1 902 403 7258
Vanguard Shareholder Solutions
1-877-608-0829 (toll free)
(604) 688-0854 (FAX)
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