TORONTO, Aug. 27 /CNW/ - Corona Gold Corporation ("Corona" or the "Company") (TSX:CRG) announces that it has received 2,678,871 common shares of Treasury Metals Inc. ("Treasury Metals") (TSX:TML), representing 10% of the number of shares outstanding of Treasury Metals. This issuance represents the final installment of the purchase price payable by Treasury Metals to Corona pursuant to the purchase agreement dated September 24, 2007 (the "Purchase Agreement") among Corona, Teck Cominco Limited ("Teck Cominco"), Treasury Metals and Laramide Resources Limited with respect to the purchase and sale of the Thunder Lake properties previously held by Corona and Teck Cominco. Under the terms of the Purchase Agreement, Corona will receive, for no additional consideration, that number of common shares of Treasury Metals sufficient for the Company to maintain its 10% ownership interest in Treasury Metals until such time as Treasury Metals has received aggregate proceeds of $2,348,004 from the issuance of additional common shares.
Corona intends to hold its common shares of Treasury Metals for investment purposes. Corona may, subject to market conditions and its ongoing evaluation of its investment in the common shares of Treasury Metals, make additional investments in or dispositions of securities of Treasury Metals, including additional purchases or sales of common shares. Corona will be filing an early warning report as contemplated by National Instrument 62-103 of the Canadian Securities Administrators in connection with its acquisition of common shares of Treasury Metals.
The Company's sale of its interest in the Thunder Lake properties was consistent with its stated objective of maximizing the value of its existing properties and exploring new resource-based exploration and investment initiatives.
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