TORONTO, Jan. 30 /CNW/ - Colombia Goldfields Ltd. (the "Company") (TSX:
GOL/OTCBB: CGDF) is pleased to announce that through a competitive bid
process, it has been selected as the winning bidder for Mineros Nacionales
S.A. As a result, Colombia Goldfields Ltd. has agreed to acquire 100% of the
issued and outstanding shares of Mineros Nacionales S.A. for cash
consideration of US$35 million. The transaction is required to be completed
within 180 days. The Company has provided a deposit guarantee in the amount
US 2.5 million which would be payable to the vendor in the event the
transaction is not completed for any reason. The Company plans to undertake
financing in order to complete the transaction.
Mineros Nacionales S.A. owns the Zona Baja on Marmato Mountain, which is
the property directly below the Zona Alta, where Colombia Goldfields' primary
project exists. The Zona Baja currently has an underground operation with a
working mill which, based on information provided to the Company, currently
produces approximately 25,000 ounces of gold per annum.
"We are extremely pleased that we have been chosen as the winning bidder
for Mineros Nacionales," said J. Randall Martin, Chief Executive Officer and
Vice Chairman of Colombia Goldfields Limited. "The ability to combine the Zona
Alta and Zona Baja properties provides us with one of the final and most vital
pieces toward achieving our goal of consolidating the Marmato Gold District
into a world-class asset."
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
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. The Company's full September 30, 2007, unaudited consolidated financial
statements and management's discussion and analysis are available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.
This release contains forward-looking statements that are based on the
beliefs of Colombia Goldfield's management and reflect Colombia Goldfield'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. In
particular, there is no assurance that a definitive agreement will be executed
or that the proposed transaction will be completed.
For further information:
For further information: Company Contact: J. Randall Martin, Vice
Chairman and CEO Colombia Goldfields Ltd. (TSX: GOL/OTC BB: CGDF), 8 King
Street East, Suite 208, Toronto, Ontario, M5C 1B5, T: (416) 203-3856, F: (416)
361-0883, firstname.lastname@example.org, www.colombiagoldfields.com; U.S.
Investor Relations: John Menditto, Roth Investor Relations, Inc., Tel. (732)
792-2200, Email: email@example.com; Canadian Investor Relations: Martti
Kangas, The Equicom Group, Toronto, ON, (416) 815-0700 x 243