Adelaide, Mar 23, 2006 AEST (ABN Newswire) - 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.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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