Colombia Goldfields Ltd. announces proposed debt financing



    TORONTO, June 11 /CNW/ - Colombia Goldfields Ltd. (or the "Company")
(TSX: GOL/OTCBB: CGDF) announced today that it plans to raise up to
US$30 million through the sale of units (the "Units"), at a price of US$1,000
per Unit, each Unit consisting of a $1,000 face value note (the "Notes"),
100 shares of common stock, par value US$0.00001, of the Company (the "Common
Shares") and 50 common share purchase warrants of the Company (the
"Warrants").
    During the first two years after the closing of the offering, the
interest rate on the Notes will be 12% per annum payable semi-annually in
arrears on each June 30th and December 31st. During years three through five
following the closing of the offering, the interest rate on the Notes will be
15% per annum payable semi-annually in arrears on each June 30th and
December 31st. The Notes will be secured by a general pledge of assets, will
mature on June 30, 2013 and will not be redeemable by the Company until
June 30, 2009. The first four interest payments on the Notes will be payable
in cash or, at the Company's option and subject to regulatory approval, Common
Shares. If payment is made in Common Shares, a 5% discount to the market price
of the Common Shares shall be used to calculate the number of Common Shares to
be issued. Each Warrant will be exercisable into one Common Share at a price
of US$1.10 for a period of two years from the closing of the offering.
    The net proceeds of the offering will be used to finance the previously
announced acquisition of Mineros Nacionales S.A. The offering is subject to
all necessary regulatory approvals, including the approval of the Toronto
Stock Exchange.
    The Units, Notes, Warrants and Common Shares have not been registered
under the U.S. Securities Act of 1933 or any state securities laws, and may
not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements under the Securities
Act of 1933 and any applicable state securities laws. This press release does
not constitute an offer to sell or the solicitation of an offer to buy the
Units, Notes, Warrants or Common Shares.

    About Colombia Goldfields
    -------------------------
    Colombia Goldfields Ltd., through its subsidiaries Compania Minera de
Caldas S.A. and Gavilan Minerals S.A., is developing what we believe is a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
district.
    Colombia Goldfields is traded in the US under the symbol CGDF, on the
Toronto Stock Exchange under the symbol GOL, and in Germany under the symbol
C2B. Further information about the Company's is available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.

    Disclaimer

    This release contains forward-looking statements that are based on the
beliefs of the Company's management and reflect the Company's current
expectations as contemplated under section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities and Exchange Act of 1934, as
amended. When used in this release, the words "estimate, "project," "believe,"
"anticipate," "intend," "expect," "plan," "predict," "may," "should," "will,"
"can," the negative of these words, or such other variations thereon, or
comparable terminology, are all intended to identify forward-looking
statements. Such statements reflect the current views of Colombia Goldfields
with respect to future events based on currently available information and are
subject to numerous assumptions, risks and uncertainties, including, but not
limited to, risks and uncertainties pertaining to development of mining
properties, changes in economic conditions and other risks, uncertainties and
factors, which may cause the actual results, performance, or achievement
expressed or implied by such forward-looking statements to differ materially
from the forward looking statements.




For further information:

For further information: Randy Martin, Vice Chairman and CEO, Colombia
Goldfields Ltd., 8 King Street East, Suite 208, Toronto, Ontario, M5C 1B5, T:
(416) 361-9640, F: (416) 361-0883, info@colombiagoldfields.com,
www.colombiagoldfields.com; U.S. Investor Relations: Michelle Roth, Roth
Investor Relations, Inc., Tel. (732) 792-2200, Email: michelleroth@rothir.com;
Canadian Investor Relations: Martti Kangas, V.P. Corporate Development,
Colombia Goldfields, Ltd., Tel: (416) 361-9640, martti@colombiagoldfields.com

Organization Profile

COLOMBIA GOLDFIELDS

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