The more I look into this one - the more I like it!

Citadel Gold has a very low float, only 16 million (as of August 2007) share outstanding with a market capitalization of $2 million. TRR will receive 1.1 million shares for the option to explore the Massey property - that is almost 7% of the company based on the current float.

The Massey project is Citadel's only active project and with the latest private placement (see article below), Dr. Bernard Sherman will control 55% of the company - very bullish.

http://biz.yahoo.com/cnw/071011/cita...

Citadel Gold plans $500,000 private placement

2007-10-11 17:52 ET - News Release

Mr. John Sadowski reports

CITADEL GOLD MINES INC. ANNOUNCES FINANCING

Citadel Gold Mines Inc. plans to complete a non-brokered private placement of a combination of common shares and flow-through common shares to Dr. Bernard Sherman, a principal shareholder and related party to the company.

The private placement will be for 4.25 million common shares at a price of eight cents and for 1,454,545 flow-through common shares at a price of 11 cents, for total proceeds to Citadel of approximately $500,000. Upon completion of the private placement, Dr. Sherman will control, directly and indirectly, approximately 55 per cent of the corporation.

The terms of the private placement were negotiated between Dr. Sherman and a special committee of Citadel's board of directors, consisting solely of independent directors and formed for the purpose of considering the private placement. In determining the terms of the private placement, the special committee received independent advice and a fairness opinion from Research Capital Corporation in respect of the transaction.

"We are pleased by Dr. Sherman's vote of confidence in the company and its future prospects," said John Sadowski, president, secretary and treasurer of Citadel. "This financing will add to our working capital and allow us to continue our exploration and development work on our joint venture property near Sudbury, Ont., and on other properties of merit presently being considered. We are very excited about Citadel's prospects and appreciate our shareholders' faith in the company."

Subject to receipt of NEX approval, it is expected that the private placement will be completed on or before Nov. 6, 2007.