DIEPPE, N.B., Dec. 16, 2016 /CNW/ - (CBI: TSX-V) Colibri Resource Corporation ("Colibri") is pleased to announce that it has signed a Letter of Intent to acquire all of the issued and outstanding shares of Canadian Gold Resources Ltd. ("CGR") from Ontop Capital Limited ("Ontop"). CGR and Ontop are both private Canadian corporations (the "Transaction").
As consideration for the Transaction, Colibri will issue an aggregate of 26,666,667 common shares (for a total of $4,000,000) to CGR. The shares will be issued as fully paid and no other compensation will be issued. There will be no finders' fees payable. The Transaction is subject to Policy 5.3 of the TSX Venture Exchange and subject to exchange approval. The Transaction will be considered a non-arms length transaction pursuant to the policies of the TSX Venture Exchange as a director of Colibri is also a significant shareholder, an officer and a director of Ontop. In addition, Colibri will seek to provide evidence of value by an independent professional valuator. Both parties will mutually agree on the final structure for proceeding with the transaction following completion of due diligence and a review of tax, accounting, corporate and securities law issues.
CGR owns 100% of the right, title and interest in Minera Bestep S.A. de C.V. ("Bestep"), a private Mexican company. Bestep holds 100% of the right, title and interest in the Pilar Gold Project ("Pilar Property") and the Sun Project. Both properties are near Suaqui Grande, Sonora Mexico and neither properties are subject to any royalties or encumbrances. The Pilar Property is 105 hectares in size and the Sun Property is 110 hectares in size. The Pilar Property has a NI43-101 Report on it.
The Pilar Property was acquired by CGR for one million U.S. dollars and substantial work has been done consisting of mapping, trenching, sampling and more than 15000 meters of drilling. Some of the highlights from the Reverse Circulation drilling programs are as follows; hole JESP-12 had 13.95 grams per tonne (g.p.t.) Au over 1.5 meters (m.); hole12-4 had 5.89 g.p.t. over 1.5 m. and hole 13-15 had 13.92 g.p.t. over 1.5 m.
The Sun Property has been subject to preliminary exploration work.
About Colibri Resource Corporation:
Colibri is a Canadian mineral exploration company listed on the TSX-V (CBI) focused on acquiring and exploring properties in Mexico.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward looking statements concerning future operations of Colibri Resource Corp. (the "Company"). All forward looking statements concerning the company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance, exploration and financial results may differ materially from any estimates and projections.
SOURCE Colibri Resource Corporation
For further information: Edward Stringer, President, CEO and Director, Tel: (506) 383-4274, [email protected]