Chalice Gold Mines Limited – Coventry Shareholders Approve Plan of Arrangement

Chalice Gold Mines Limited – Coventry Shareholders Approve Plan of Arrangement

Canada NewsWire

Symbol: ASX: CHN TSX: CXN
Shares outstanding: 251 million
Fully diluted: 259 million

PERTH, Western Australia, Jan. 22, 2014 /CNW/ – Chalice Gold Mines Limited (TSX: CXN) (ASX: CHN) (“Chalice”) and
Coventry Resources Inc. (ASX: CYY) (TSXV: CYY) (“Coventry”)
are pleased to advise that Coventry security holders have resoundingly
approved the Plan of Arrangement (“the Arrangement”) for Chalice’s
acquisition of a 100% interest in the Cameron Gold Project in Ontario,
Canada
.

Coventry shareholders approved the Arrangement at a meeting held in
Vancouver at 10am on January 21, 2014. The motion was carried on a poll
with 39,849,393 (99.89%) votes cast in favour of the transaction.

Following satisfaction of the remaining conditions precedent contained
within the Arrangement Agreement, which includes final orders from the
Court in British Columbia for approval of the Arrangement, Chalice will
issue 46 million shares in Chalice to Coventry which will then be
distributed directly to Coventry shareholders on a pro rata basis on or
around February 7, 2014.

An indicative timetable for completion of the transaction is included in
Annexure A.

Coventry President and CEO, Steven Chadwick thanked Coventry
shareholders for their support of the transaction.

Commenting on the results of Coventry’s shareholder meeting, Chalice
Managing Director, Bill Bent said “Chalice’s Board and Management are very pleased with Coventry
shareholder’s support for this acquisition. We are confident that
Chalice can unlock the excellent upside potential of the Cameron
Project. The existing Preliminary Economic Assessment and previous
study work focuses on the potential for a combined open pit and
underground development running almost in parallel. We see potential
to enhance the economics of the project by focusing on the open pit
potential, with the underground as optional upside later in the mine
life.”

Mr Bent said “Chalice’s immediate focus during 2014 will be on optimising and
increasing the existing open pit mineral resource through pit
optimisation and near mine exploration. We will also continue to
progress critical path project development and approval work scopes in
parallel, to make sure we are well positioned to move quickly to a
development decision once the project meets our internal hurdle
criteria
.”

BILL BENT
Managing Director

Chalice Gold Mines Limited

STEVEN CHADWICK
President and Chief Executive Officer

Coventry Resources Inc.


Forward Looking Statements
This document may contain forward-looking information within the meaning
of Canadian securities legislation and forward-looking statements
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 (collectively, “forward-looking statements”). These
forward-looking statements are made as of the date of this document and
Chalice Gold Mines Limited (the Company) does not intend, and does not
assume any obligation, to update these forward-looking statements,
except as required by law or regulation.

Forward-looking statements relate to future events or future performance
and reflect Company management’s expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to whether the conditions to the Transaction will be met, the
estimation of mineral reserves and mineral resources, the realisation
of mineral reserve estimates, the likelihood of exploration success,
the timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes
or claims and limitations on insurance coverage.

In certain cases, forward-looking statements can be identified by the
use of words such as plans, expects or does not expect, is expected,
budget, scheduled, estimates, forecasts, intends, anticipates or does
not anticipate, or believes, or variations of such words and phrases or
statements that certain actions, events or results may, could, would,
might or will be taken, occur or be achieved or the negative of these
terms or comparable terminology. By their very nature forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Such factors include, among others, conditions precedent
to completion of the Transaction being met; risks related to actual
results of current exploration activities; changes in project
parameters as plans continue to be refined; future prices of mineral
resources; possible variations in ore reserves, grade or recovery
rates; accidents, labour disputes and other risks of the mining
industry, as well as those factors detailed from time to time in the
Company’s interim and annual financial statements, all of which are
filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements.

Accordingly, readers should not place undue reliance on forward-looking
statements.

None of the securities anticipated to be issued pursuant to the
Arrangement have been or will be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”), or any
state securities laws, and any securities issued in the Arrangement are
anticipated to be issued in reliance upon available exemptions from
such registration requirements pursuant to Section 3(a)(10) of the U.S.
Securities Act and applicable exemptions under state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities.

ANNEXURE A – INDICATIVE TIMETABLE

Activity Date
Announcement of results of Coventry’s shareholder meeting to approve the
Arrangement.
22 January 2014
Obtain final court orders from the Court in British Columbia for
approval of the Arrangement.
24 January 2014
TSX-V issues bulletin announcing the effective date/distribution record
date and payment date.
29 January 2014
Coventry CDI’s commence trading ex-distribution on ASX. 29 January 2014
Coventry shares commence trading ex-distribution on TSX-V. 31 January 2014
Effective Date/Distribution Record Date 4 February 2014
Despatch Date of Chalice Shares to Coventry shareholders 7 February 2014

SOURCE Chalice Gold Mines Limited

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