Coronation Minerals Inc./Guyana Goldfields Inc.: Acquisition of Remaining 50% of Coppermine River Project
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TORONTO, ONTARIO, Jun 26 (MARKET WIRE) -- Coronation Minerals Inc. (TSX VENTURE: CMV) ("Coronation") and Guyana Goldfields Inc. (TSX: GUY) ("Guyana") are pleased to announce that they have entered into an agreement which allows for Coronation to acquire the remaining 50% interest of the Coppermine River Project (the "Coppermine Agreement"). Coronation had originally acquired its initial 50% in the Coppermine River Project in 2002. Terms of the Coppermine Agreement call for Coronation to issue 5,000,000 common shares to Guyana. Guyana will also retain a 1.5% net smelter return royalty over the unpatented claims only, and a right of first refusal to participate in future financings of Coronation. Guyana currently holds approximately 14% of the issued and outstanding common shares of Coronation, and 3 directors act on both the Boards of Coronation and Guyana. In addition, J. Patrick Sheridan is the President and Chief Executive Officer of both companies. As a result, Guyana is a related party of Coronation, and the agreement for Coronation to acquire the remaining 50% of the Coppermine River Project from Guyana constitutes a related party transaction under Multilateral Instrument 61-101 "Protection of Minority Security Holders in Special Transactions" ("MI 61-101"). Upon completion of the Coppermine Agreement, Guyana will hold or control approximately 19.8% of the issued and outstanding shares of Coronation. There has been no prior valuation in respect of the Coppermine Agreement. The Coppermine Agreement is not subject to the formal valuation requirements of MI 61-101 by virtue of subsection 5.5(a) and is also exempt from minority shareholder approval requirements by virtue of subsection 5.7(1)(a), as at the relevant time neither the fair market value of the assets being acquired nor the fair market value of the consideration being paid under the Coppermine Agreement will exceed 25% of Coronation's market capitalization as calculated in compliance with MI 61-101. About Coronation Minerals Inc. Coronation Minerals Inc. is a Canadian based exploration and development company. The Company presently controls and holds both the Wellgreen Property, Yukon Territory and the Coppermine River Project, Nunavut Territory. Both of these projects are described as Copper-Nickel-Platinum-Palladium prospects. About Guyana Goldfields Inc. Guyana Goldfields Inc. is a Canadian based mineral exploration company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil. Guyana holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996. Additional Information Information is available on Guyana's website at www.guygold.com and on www.sedar.com. The TSX and TSX Venture have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. Contacts: Guyana Goldfields Inc. J. Patrick Sheridan President and Chief Executive Officer (416) 628-5936 (416) 628-5935 (FAX) Email: firstname.lastname@example.org Website: www.guygold.com Copyright 2008, Market Wire, All rights reserved. -0-
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