COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) advises:
The Company and the vendors have amended the terms of the Aspen Option to acquire 16 mineral tenures which collectively form part of the Company’s Hit Property (see News Release – April 27, 2012) wherein for consideration of the remaining aggregate cash payments of $75,000 and aggregate share issuances of 350,000 common shares, the Company has transferred 4 mineral tenures (out of 43) that formed a small portion of its Kinaskan Property (the “Transferred Kinaskan Claims”) extinguishing any further cash payments and share issuance obligations due under the Aspen Option.
The Company has subsequently exercised the Aspen Option and has acquired its 100% interest, subject to a 2.5% NSR payable to the vendors of which 2% may be purchased for $4,000,000. The Transferred Kinaskan Claims remain subject to the same NSR payable to the Company.
Upon exercise of the Aspen Option and consolidation of land in the Hit area, Colorado is the now the largest land holder in the area which saw three diamond drill programs (Copper Mountain- Axe Property, Sumac (Sumitomo)–Dillard Property, Kaizen Discovery- Aspen Grove Project) and a bulk sample program (Gold Mountain– Elk Property) completed this summer by others contiguous to Colorado’s Hit Property. Colorado has recently completed surface sampling and prospecting along trend of these prospective areas. See figure one below for further details.
Although exploration results to date have been encouraging on the Eldorado Property, upon completing its review of this project and taking into context its other projects, notably KSP and North ROK, the Company has elected not to proceed under the terms of its Eldorado Option. The elimination of cash payments due for 2014 and future work commitment requirements of $1,500,000 due for 2016 will allow additional funds to be allocated to its KSP Option obligations.
Adam Travis, Colorado’s President and C.E.O stated; “During these fiscally difficult times, Colorado’s objectives are to reduce holdings costs while consolidating and advancing its core land positions. With $3.5M working capital as at September 30, 2014 as described in the Company’s financials and md&a for September 30, 2014 (“Q2 Interim Report”) and moderate work commitments due in 2015 under its KSP option the Company is in relatively good shape to weather the current market. Trading 4 claims at Kinaskan for the remaining obligations at Hit on the Aspen Option is one such way in which we will continue to deliver value and continue to upgrade our holdings.” (See www.sedar.com under the Company’s profile for a copy of its Q2 Interim Report).
Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and is also seeking opportunities in Southwest USA and Latin America.
Colorado’s current exploration focus is to continue to advance its North ROK property, located 15 km’s northwest of the Red Chris mine development, and its KSP property optioned from SnipGold, located 15 km’s along strike to the southeast of the past producing Snip Mine, both located in northern central British Columbia.
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
T: (250) 768-1511
F: (250) 768-0849
TF (855) 768-1511
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, specifically the resource estimate and any future exploration work at the North ROK project, constitute “forward-looking information” as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including: that the Company’s financial condition and development plans do not change as a result of unforeseen events, that the Company obtains required regulatory approvals, that the mineralization at North ROK conforms with the geological model as described in the Report, that the Company continues to maintain a good relationship with the local North ROK project communities, and that future metal prices reflect or exceed those used in the resource estimate as a result of future demand for metals. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, which could result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company’s Management’s Discussion and Analysis reports filed under the Company’s profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
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.