Corona Gold Corporation - Rights Offering

2005-09-08

TSXV - TSX Venture Exchange · Canada

TORONTO, Sept. 8 /CNW/ - Corona Gold Corporation (the "Company") (TSX - CRG) announces that it has finalized the terms of a proposed rights offering ("Offering"). The Company will be offering to eligible holders of its outstanding common shares of record at the close of business on September 16, 2005 (the "Record Date") rights ("Rights") to subscribe for additional common shares on the terms set forth in a rights offering circular (the "Circular") to be mailed by the Company to shareholders. The Circular will also be available on SEDAR. Each such holder will receive one Right for each common share held on the Record Date. Four Rights will entitle the holder to purchase one common share of the Company at a price of Cdn$0.25. The Toronto Stock Exchange has approved the Rights for trading effective at the opening of the market on September 14, 2005 and has listed the common shares issuable on exercise of the Rights. The Rights will expire on October 13, 2005. Shareholders who exercise all of their Rights will also be entitled to acquire additional shares pursuant to an additional subscription privilege to be provided for under the Offering, the terms of which are described in the Circular. Dundee Corporation, the Company's largest beneficial shareholder, has made a stand-by commitment pursuant to which it has agreed to acquire all common shares issuable on the exercise of Rights not acquired by other Rights holders. The Rights and underlying common shares are not being offered to, and the Rights may not be exercised by, persons who are residents of any jurisdiction other than the Provinces of British Columbia, Alberta and Ontario. Reference is made to the section in the Circular entitled "Ineligible Shareholders". Gross proceeds of the Offering will be approximately $910,000. The Company intends to use the proceeds of the Offering (after payment of the expenses of the Offering) to pursue and evaluate new resource projects and for general corporate purposes.

%SEDAR: 00012331E