COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce it has closed its previously announced non-brokered private placement of 555,556 flow-through units (“FT Units”) at a price of $0.90 per FT Unit for total gross proceeds of $500,000 (the “Financing”).
Each FT Unit will consist of one flow-through common share and one-half of one non flow-through common share purchase warrant (“Warrant”). Each full Warrant entitles the holder to purchase one additional non flow-through common share at a price of $1.25 for a period of 12 months. Finder’s fees of 3% cash were paid on a portion of the Financing, in accordance with the policies of the Exchange.
In accordance with Canadian securities legislation currently in effect, the securities issued pursuant to the Financing will have a restricted “hold” period in Canada expiring on April 30, 2011.
Proceeds from this private placement will be used for the exploration and development of the Company’s British Columbia and Yukon Properties.
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 aggressively follow up exciting “Carlin” style mineralization (see News release dated November 22, 2010) found by previous workers on its 100 % owned Oro Gold Property in the Yukon as soon as conditions permit. Trenching and drilling programs are also being contemplated on the company’s Hit Property.
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.