COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce that it has completed its previously announced $2,000,000 Non-Brokered Placement and that Kinross Gold Corporation (“Kinross”) was the single placee through the issuance of 2,222,222 units at $0.90 per unit (the “Non-Brokered Placement”).
The Non-Brokered Placement is in addition to the recently closed brokered private placement financing (the “Brokered Placement”) announced April 14, 2011 co-led by Macquarie Capital Markets Canada Ltd. (“Macquarie”) and Dundee Securities Ltd. (“Dundee”) (collectively the “Underwriters”), the Company has issued 8,970,000 units of the Company (the “Units”) at an issue price of $0.90 per Unit and 5,750,000 common shares of the Company that qualify as flow-through shares for purposes of the Income Tax Act (Canada) (the “Flow-Through Shares”) at an issue price of $1.05 per Flow-Through Share, following full exercise of the over-allotment option granted to the Underwriters, for aggregate gross proceeds of $14,110,500.
The net proceeds from the Non-Brokered and Brokered Placement will be used to fund continued development of the Company’s exploration properties including the Oro Gold Property in the Yukon, and for general working capital purposes.
Colorado Resources by way of staking has significantly increased the size of its Oro Property (originally 10,854 hectares) in the Yukon to over 36,185 hectares that covers an area 10-15 km wide by 29 kilometres long and covers the prospective geology between Golden Predator Corp’s Cynthia Property and Teck Resources Ltd’s Nidd Property.
The Company is also pleased to announce that it has strengthened its technical team and has appointed Mr. Michael Cathro, MSc., P.Geo to its Advisory Board and Ms. Linda Dandy, P.Geo as Exploration Manager B.C & Yukon. Both Michael and Linda bring a wealth of project management and generation for more than 25 years.
Mr. Adam Travis, President of Colorado, stated “The closing of these financings totalling more than $16 million dollars with the support of Macquarie and Dundee along with the participation of Osisko Mining and Kinross are very important milestones for Colorado. These funds will allow us to aggressively advance our projects and we look forward to a very exciting exploration season in B.C and the Yukon.”
This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent an applicable exemption from U.S. registration requirements.
Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado’s initial focus will be to follow up exciting “Carlin” style mineralization found by previous workers on its Oro Gold Property in the Yukon as soon as conditions permit.
ON BEHALF OF THE BOARD OF DIRECTORS OF
COLORADO RESOURCES LTD.
President and Chief Executive Officer
For more information, please contact:
Colorado Resources Ltd.
Adam Travis, President and Chief Executive Officer or
Terese Gieselman, Chief Financial Officer and Secretary
T: (250) 768-1511
F: (250) 768-0020
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company’s prospectus dated September 16, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company’s page on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.