Crusader Resources Corporate Update (8584N)

TIDMCAS

RNS Number : 8584N

Crusader Resources

23 January 2019

For immediate release

23 January 2019

Crusader Resources Limited

("Company" or "Crusader")

Corporate Update

The Board of Crusader Resources Limited (ASX:CAS, AIM:CAS) provides a further update on current funding. As previously announced, since October last year, the Directors have been in discussions with a number of providers of both debt and equity funding and on 24 December 2018 the Company announced that it had issued secured convertible notes in aggregate to raise AUD$1.4 million before costs ("Convertible Notes").

The Company continues to require further immediate funding for short term general working capital needs and in particular, there is a need to raise additional funding before the end of January for the Group to continue as a going concern.

The Board is in advanced discussions to resolve the funding shortfall before the end of January, and intend to follow with a pro rata entitlement issue to eligible shareholders ("Entitlement Issue"). The timing, quantum and pricing for the Entitlement Issue however have not yet been finalised.

Special note concerning the Market Abuse Regulation

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR"). The person who arranged for the release of this announcement on behalf of the Company was Marcus Engelbrecht, Managing Director.

Website

A copy of this announcement is available from the Company's website at http://www.crusaderresources.com/

Enquiries:

 
 Crusader Resources Limited 
 Mr. Andrew Beigel                     Office (Australia): +61 8 9320 
  CFO / Company Secretary               7500 
                                        Email: [e-mail] 
 Beaumont Cornish (Nomad)              Tel: [phone] 
  Roland Cornish / Michael Cornish      Email: [e-mail] 
 Camarco (Financial PR)                Tel [phone] / +44(0)20 
  Gordon Poole / Nick Hennis            3781 8330 
  / Monique Perks 
 H&P Advisory (Joint Broker)           Tel: [phone] 
  Neil Passmore / Andrew Chubb 
  / Ernie Bell 
 Pinnacle Corporate Finance            Tel: [phone] 
  (Corporate Adviser) 
  Andrew Frazer 
 

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company's business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company's control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

About Crusader

Crusader Resources Limited (ASX:CAS, AIM:CAS) is a minerals exploration and development company listed on the Australian Securities Exchange and the AIM Market of the London Stock Exchange. Its major focus is Brazil; a country Crusader believes is vastly underexplored and which offers high potential for the discovery of world class mineral deposits.

Crusader has two key gold assets:

Borborema Gold Project

The Borborema Gold Project is in the Serido area of the Borborema province in north-eastern Brazil. It is 100% owned by Crusader and consists of three mining leases covering a total area of 29 km(2) including freehold title over the main prospect area.

The Borborema Gold Project benefits from a favourable taxation regime, existing on-site facilities and excellent infrastructure such as buildings, grid power, water, sealed roads and is close to major cities and regional centres. The project's Ore Reserve includes Proven and Probable Ore Reserves of 1.61Moz of mineable gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide & fresh). The measured, indicated and inferred Mineral Resource Estimate of 2.43Moz @ 1.10g/t gold, remains open in all directions.

Juruena Gold Project

The Juruena Gold Project is located in the highly prospective Juruena-Alta Floresta Gold Belt, which stretches east-west for >400km and has historically produced more than 7Moz of gold from 40 known gold deposits. Historically there is a database of more than 30,000 meters of drilling and extensive geological data.

ENDS

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January 23, 2019 02:07 ET (07:07 GMT)