COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) reports that is has acquired ownership of 4,200,000 common shares of Damara Gold Corp. (“Damara”) at a price of $0.05 per share pursuant to a debt settlement agreement in the amount of $210,000 (the “Debt Settlement” ) which has now closed effective March 9, 2017 (see Damara news release on March 6, 2017).
As a result Colorado now owns 19.71% of the issued and outstanding shares of Damara. Prior to this acquisition Colorado did not own any securities of Damara. Colorado acquired the common shares for investment purposes from Damara’s treasury. Colorado will evaluate its investment in Damara from time to time and may, based on such evaluation, market conditions and other circumstances increase or decrease its shareholdings as circumstances require and in accordance with the requirements of the policies of the TSX Venture Exchange. The exemption relied on for the acquisition of common shares is section 2.14 of National Instrument 45-106 Prospectus and Registration Exemptions. A copy of the Early Warning report filed by Colorado in connection with the acquisition will be available on Damara’s SEDAR profile.
The debt was incurred wherein Colorado advanced funds in connection with a proposed property transaction. The parties did not conclude such agreement and as such the advances were recorded as interest-bearing advances (15% per annum).
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 Nevada.
Colorado’s main BC exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100% owned Kingpin property and the 100% owned North ROK property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.
ON BEHALF OF THE BOARD OF DIRECTORS OF
COLORADO RESOURCES LTD.
President and Chief Executive Officer
For more information, please contact:
Colorado Resources Ltd.
Alex Blanchard, VP Corporate Development
T: (250) 768-1511
F: (250) 768-0849
TF (855) 768-1511
*This news release contains information about adjacent properties on which Colorado has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, 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 Company continues to maintain a good relationship with the local project communities. 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.