/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Feb. 9 /CNW/ - (TSX Venture Exchange: CMJ) - Colombian Mines Corporation ("Colombian
Mines" or "the Company") is pleased to announce that it has entered into an agreement with
Canaccord Genuity Corp. (the "Agent"), to sell 7,150,000 units (the
"Units") on a private placement commercially reasonable efforts basis
at a price of C$0.70 per Unit for gross proceeds of up to C$5,005,000
(the "Brokered Offering"). In addition, the Company will grant the
Agent an over-allotment option, exercisable prior to the closing of the
Brokered Offering, to purchase from the Company up to an additional
1,080,000 Units at C$0.70 per Unit to raise additional gross proceeds
of up to C$756,000 (the "Over-Allotment Option", and together with the
Brokered Offering, the "Offering").
Each Unit shall consist of one common share of the Company and one half
of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant shall be exercisable into one common share of
the Company for a period of 24 months from closing at an exercise price
The Agent will receive a cash commission on the sale of the Units
representing 6.5% of the gross proceeds raised and brokers warrants
("Broker Warrants") equal to 6.5% of the Units sold under the Offering.
Each Broker Warrant shall be exercisable for one common share of the
Company at a price of C$0.70 at any time up to 24 months after
closing. In addition, the Agent will receive a corporate finance fee
of 50,000 Units.
The proceeds raised under the Offering will be used for exploration and
development of the Company's mineral properties in Colombia and for
general working capital purposes.
Closing of the Offering is anticipated to occur on or before March 1,
2011 and is subject to receipt of applicable regulatory approvals
including approval of the TSX Venture Exchange. Securities issued
under the Offering will be subject to a four month hold period which
will expire four months from the date of closing.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Colombian Mines Corporation
Colombian Mines Corporation is focused on the acquisition, exploration
and development of high quality mineral properties in Colombia with
near to intermediate term production potential. Colombia is
increasingly recognized as a highly prospective, yet under-explored
country with excellent discovery potential. Further information can be
found on our website at www.colombianmines.com.
Signed: "Robert G. Carrington"
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statement Caution
This news release contains certain "forward-looking statements", as
defined in the United States Private Securities Litigation Reform Act
of 1995, and within the meaning of Canadian securities legislation.
Such statements include, without limitation, statements regarding the
proposed use of proceeds and anticipated date of closing. The Company
cautions that forward-looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the
statements are made and they involve a number of risks and
uncertainties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change, except as required by law.
Factors that could cause future results to differ materially from those
anticipated in these forward-looking statements include, the Company's
inability to secure subscriptions from investors to complete the
proposed financing in whole or in part, a management decision to change
the use of proceeds based on changing circumstances, the volatility of
metals prices and other risks associated with mineral exploration. The
reader is urged to refer to the Company's disclosure, publicly
available through the Canadian Securities Administrators' System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential
SOURCE Colombian Mines Corporation
For further information: