VANCOUVER, April 7 /CNW/ - Colibri Resource Corporation ("Colibri" or the "Company") (TSX.V-CBI) is pleased to announce the closing of its previously announced non-brokered private placement (the "Private Placement") of units (each, a "Unit"). In total, the Company issued an aggregate of 12,000,000 Units at a price of $0.20 per Unit for gross proceeds of $2,400,000.
Each Unit issued pursuant to the Private Placement consists of one common share (each, a "Common Share") of the Company and one share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one Common Share at an exercise price of $0.35 per Common Share until April 6, 2013. In the event that the closing price of the Common Shares on the TSX Venture Exchange (the "Exchange") is $0.60 or higher for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof through the issuance of a news release and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
All of the Common Shares and Warrants issued pursuant to the Private Placement are subject to a four-month hold period which expires on August 7, 2011.
Finders acting in connection with the Private Placement will receive a finder's fee in the total amount of $112,350 and an aggregate of 561,750 finder's warrants, each finder's warrant entitling the holder thereof to purchase one Common Share until April 6, 2013.
An insider of the Company acquired a total of 2,450,000 Units in the Private Placement (the "Insider Participation"). The Insider Participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that the fair market value of such Insider Participation did not exceed 25% of the Company's market capitalization.
The proceeds from the Private Placement will be used for general working capital for Colibri's operations in Sonora, Mexico including the previously announced 2000 meter drill program at the Ramard Silver project near the municipality of Carbo, Sonora.
Ramard Silver Project
Previous drill programs at the La Bronca and Verde Zones intercepted concentrations of up to 1235 grams per metric tonne (gpt) silver (Ag) and greater than 20% combined lead/zinc (Zn/Pb) and 1% copper (Cu) (see http://www.colibriresource.com/s/Ramard.asp) over widths of 1.5 meters, all at less than 40 meters depth from the surface. Nine of the 95 total borings contained a silver intercept greater than 310 gpt (10 troy ounces). Mineralization in the Bronca Zone (81 holes) occurs over at least 1 kilometer length, 300 meters width. All eight drill holes at the Verde Zone cut zinc mineralization within skarned calcareous shale and limestone. RPD83 cut 10.5 metres averaging 7.25% zinc between the surface and 10.5 metres depth.
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to the drill program at the Ramard Silver project. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration and production, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labor problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither 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.
SOURCE Colibri Resource Corporation
For further information: Lance Geselbracht, P.E., President and Chief Executive Officer, Tel: (250) 755-7871, Website: www.colibriresourcecorp.com