Creso Exploration Inc CRXEF

RE: RE: Private Placement

[dudediligent]

No Leaky you are not mistaken. Understand one thing, Franco knows what Creso is sitting on and they also know that these shares will be worth a great deal more in the coming months/years. The other portion of the PP which is key to Franco is the 2% royalty. Franco isn't selling their shares anytime soon.

Aside from this Franco has teamed up with Creso in other ways most don't realize. Franco's geologists are some of the best in the business. Creso signed a JV with PTX recently for good reason, that's all I can say. I suggest holding a good number of shares on each company that you are comfortable keeping long. Both are cheap now but that is about to change and will be rewarding for the patient investor.

As part of the private placement, Franco is granted an option to purchase a perpetual 2-per-cent net smelter return royalty on gold and other minerals produced from the property. The option may be exercised within 60 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-per-cent discount rate applied to the base case model assumptions in the feasibility study used to make the decision to construct and finance the mine.