Constantine Metal Resources Ltd. (the “Company”) announces that it intends to raise up to $1,400,000 through the non-brokered private placement of up to 2,800,000 units of the Company at the price of $0.50 per unit. Each unit consists of one common share and one warrant, each warrant entitling the holder to purchase one additional share of the Company at a price of $0.70 per share for a period of 12 months.
Net proceeds from the private placement will be applied to the 2008 Palmer project surface exploration and diamond drilling scheduled to start in early June.
The Company may pay a finder’s fee in connection with a portion of the private placement.
Certain directors and officers of the Company may acquire units under the private placement. Any such participation would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration paid by such persons will exceed 25% of the Company’s market capitalization. This private placement is subject to regulatory approval.
Constantine owns a 100% interest in the Palmer project, a world class base metal exploration opportunity in an accessible part of southeast Alaska where the Company intersected thick, high-grade massive sulphides in 2 drill holes spaced 430 meters apart on the Glacier Creek prospect at the end of the 2007 drill season (see news release dated December 7, 2007 for details). The two substantial intersections reported are CMR07-07 (3.8% copper, 7.2% zinc, 0.37 g/t gold and 47 g/t silver over 46 feet [14 meters] core length) and CMR07-09 (79.5 feet [24 meters] core length assaying 6.46% zinc, 1.19% copper, 0.45% lead, 0.67 g/t gold and 49.8 g/t silver). Reported core lengths are interpreted to be 80-90% true thickness. Constantine has signed a drill contract with Connors Drilling LLC for two drills starting in early June 2008 to continue work on the Palmer, Glacier Creek prospect.
At the Company’s 100% owned Munro Croesus Gold project east of Timmins in northern Ontario, a recently completed 2000 meter drill program has confirmed the occurrence of high-grade gold on the faulted off-set, south side of the Croesus fault (including 8.4 g/t gold over 0.40 meters and 83 g/t gold over 0.10 meters – see news release dated April 29, 2008) and at depth below the former past-producing Croesus gold mine workings (12.2 g/t gold over 0.46 meters – see news release dated May 13, 2008). The Croesus gold mine is known for having produced some of the highest grade gold mined in Ontario. The Ontario Bureau of Mines (1919) reported that “765 pounds of ore taken from a portion of the shaft yielded $47,000 worth of gold”. This represented a grade of 5,944 oz gold per short ton (203,771 g/tonne) at a gold price of $20.67 per troy ounce. Five gold samples purchased by the Ontario Bureau of Mines for exhibition purposes and now in possession of the Royal Ontario Museum weigh 85 pounds collectively and contain 480.7 ounces of gold or 11,310 oz gold per short ton (387,727 g/tonne). (see news release dated October 30, 2007).
Garfield MacVeigh, President of the Company and a Qualified Person, has reviewed and approved the technical information contained in this release.
Please visit the Company’s website (www.constantinemetals.com) for more detailed company and project information.
“J. Garfield MacVeigh”
Telephone: (604) 629-2348 or (778)-772-4437
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The news release includes certain “forward-looking statements”. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of Constantine are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Constantine’s expectations are exploration risks detailed herein and from time to time in the filings made by the Constantine with securities regulators.