U.S. submits proposal to Crown Butte

Crown Butte Resources is one step closer to receiving compensation for the scrapped New World gold project in Montana.

Under an agreement with the U.S. government, Crown Butte scuttled the project in return for US$65 million in federally owned assets. The government has identified federal royalty revenues from various coal, oil and gas projects in Montana. As part of the deal, portions of these projects will be transferred to Crown Butte through a royalty stream.

Crown Butte has 30 days to review the proposal and retains the right to withdraw from the deal should the assets be deemed unacceptable. The U.S.

government has 18 months to transfer the assets to the company should the deal be accepted.

Crown Butte must also set aside $22.5 million for reclamation work at the New World site.