Thursday, September 30, 2010

Creso Exploration (TSX VENTURE:CXT) (FRANKFURT:C3X) Closes $1.5 Million Private Placement Financing With Franco-Nevada

Creso Exploration (TSX VENTURE:CXT) (FRANKFURT:C3X)  Closes $1.5 Million Private Placement Financing With Franco-Nevada

MONTREAL, QUEBEC--( gold and mining stocks blog )  - Sept. 30, 2010) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT) (FRANKFURT:C3X) reports that it has closed the previously announced non-brokered private placement by Franco-Nevada Corporation ("Franco") (TSX: FNV). Creso issued 1,415,094 common shares at a price of $1.06 for an amount of $1,500,000. The purchase price was set at a 15% premium over the 20-day volume weighted-average market price prior to the announcement of the private placement on September 21, 2010. See press release issued on that date.

As part of the private placement, Franco is granted an option ("Option") to purchase a perpetual 2% Net Smelter Return royalty on gold and other minerals produced from the Property. The Option may be exercised within sixty days following the date on which (i) a decision is made to construct a mine by Creso and (ii) the planned mine is fully financed either with cash on hand or a firm commitment of bank financing. The exercise price of the Option is determined to be equal to the after-tax net present value of the royalty revenue calculated using a 6.5% discount rate applied to the base case model assumptions in the feasibility study used to make the decision to construct and finance the mine.

Creso also announces that the TSX Venture Exchange has approved the re-repurchase by the Corporation of the right of first refusal ("Right of First Refusal") previously granted to Anglo Pacific Group plc ("APG") (LSE: APF.L and TSX: APY), in respect of the grant by the Corporation of any royalties on certain properties in consideration for the issuance to APG of 500,000 common shares of Creso.
All securities issued to Franco and APG are subject to a four month hold period.
About Creso
The Corporation's principal mining exploration holdings are located in the Shining Tree mining camp of Northern Ontario within 100 km of the Timmins and Kirkland mining camps, and additional interests are held in base metal properties in Guatemala. 
About Franco-Nevada Corporation
Franco-Nevada Corporation (TSX: FNV.TO) is a gold-focused royalty company with additional interests in platinum group metals, oil and gas, and other assets. Its portfolio of high-margin cash flow producing assets is located principally in the United States, Canada, and Mexico. The Company also holds a pipeline of potential future cash flowing assets that are being developed, permitted or explored.

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.

For more information, please contact
Creso Exploration Inc.
Robert Casaceli
President and CEO
514-866-6001 # 239
514-866-6193 (FAX)
Creso Exploration Inc.
Douglas Murray
Investor Relations
613-882-7467 (FAX)

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