DIEPPE, NB, Aug. 9, 2017 /CNW/ – (CBI: TSX-V) Colibri Resource Corporation ("Colibri" or the "Company") has completed its previously announced acquisition of Canadian Gold Resources Ltd. ("CGR") from ONTOP Capital Limited (the "Vendor"). In accordance with the terms of the Share Purchase Agreement, Colibri acquired all the outstanding shares of CGR for an aggregate acquisition cost of $4,000,000, paid by way of issuance of 24,242,425 common shares (the "Consideration Shares") at a price of $0.165 per share to the Vendor.
Colibri now 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 located near Suaqui Grande, Sonora, Mexico and neither property is subject to any royalties or encumbrances. The Pilar Property is 105 hectares in size and the Sun Property is 110 hectares in size. A report on the Pilar Gold Project prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (the "NI 43-101 Report") has been prepared by Jamie Lavigne M.Sc., P.Geo, a Qualified Person under NI 43-101 and independent of the Pilar Gold Project. The Sun Project has been subject to preliminary exploration work. The NI 43-101 Report is available on SEDAR.
Immediately after closing, the Vendor distributed the Consideration Shares to its shareholders by way of a return of capital dividend. As a result of such distribution, a new Control Person will be created as one of the shareholders of the Vendor, John Schiavi, will be holding or controlling Consideration Shares equal to more than 20% of the issued and outstanding common shares of the Company after giving effect to the Transaction.
The Transaction is also a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions ("MI 61-101") as Ronald J. Goguen, a director, officer and shareholder of the Company, is also a significant shareholder of the Vendor, holding more than 19% of its shares. In accordance with MI 61-101, the Company obtained the approval of minority shareholders of the Company at a meeting of shareholders held on June 15, 2017 and a obtained a 3rd party valuation of CGR (the "Valuation") by Harris Capital Corporation of Toronto, Ontario.
About the Pilar Property
The Pilar Property is an exploration stage property located in the Sierra Madre Occidental, a geological province that occupies northwestern Mexico and that is the host to a number of epithermal precious metal deposits and porphyry copper (± Mo, Au) deposits. Gold and Silver are the primary metals of interest on the property. Pilar has been the subject of two main exploration initiatives. The first was completed by Santa Catalina Mining (a wholly owned subsidiary of Lundin Mining) during 1996 and 1997 and the second was completed by Minera Lyell S.A. de C.V, and then Bestep, from 2008 to 2013. Both phases of exploration have included significant programs of surface exploration and reverse circulation drilling. Highlights of drilling results completed during the second phase of exploration are contained in the table below and may be indicative of higher grade lenses with a broader halo of lower grade mineralization.
Surface exploration at Pilar completed through both phases of exploration includes geological mapping and sampling, trenching and rock-chip sampling, soil surveys, and geophysical surveys. The considerable geological and exploration data generated on the property to date has been compiled and this compilation forms the basis for continued interpretation, targeting, and exploration program design on the Project. Preliminary metallurgical test work has been completed and results do not indicate any negative issue with Au recovery. No mineral resource estimates have been completed for the Project.
The author of the NI 43-101 Technical Report recommends that the Project continue to be explored for the discovery of an epithermal precious metals mineral deposit with two phases of exploration. The first phase recommended consists of early stage exploration activities including further geological mapping, trenching, and soil sampling; topographic surveying and accurately surveying drill hole collar locations, and a total of 1,500 metres of RC drilling. The second phase of recommended exploration is contingent upon the positive conclusion of the first phase and includes RC drilling with the objective of resource delineation of prioritized targets on the property.
Jamie Lavigne M.Sc., P.Geo., a Qualified Person as defined in NI 43-101 and author of the NI 43-101 technical report on the Pilar Property has reviewed and approved the technical contents of this release.
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 Corporation (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: Ronald J. Goguen, President, CEO and Director, Tel: (506) 383-4274, [email protected]