Colombia Crest Gold Offers Up to 19.9 Percent Ownership to IAMGOLD
October 26 2011 - 8:10AM
Marketwired
Colombia Crest Gold Corp. (TSX VENTURE:CLB)(PINK
SHEETS:ECRTF)(FRANKFURT:EAT) ("Colombia Crest"; the "Company") is
pleased to announce that IAMGOLD Corporation ("IAMGOLD") has
entered into a Letter Subscription Agreement with the Company
pursuant to which IAMGOLD has agreed to purchase 12,000,000 units
(each a "Unit") at the price of Cdn$0.285 per Unit, for gross
proceeds of $3,420,000. Each Unit will be comprised of one common
share and one-half of a share purchase warrant (each full warrant a
"Warrant"), and each Warrant will entitle the holder to purchase
one additional Share (a "Warrant Share") for Cdn$0.35 for two years
after closing. The Letter Subscription Agreement also provides for
technical input from IAMGOLD on the Company's upcoming exploration
programs in Colombia, and grants to IAMGOLD certain anti-dilution
rights in the event that the Company conducts further financings
during the three years after closing, or in the event that
outstanding options and warrants increase the Company's outstanding
share capital by 5% or more. Completion of the Private Placement is
subject to acceptance by applicable securities regulatory
authorities including the TSX Venture Exchange. No finder's fee
will be payable in connection with the financing.
"IAMGOLD's commitment to invest in Colombia Crest is a testament
to the quality of our Colombian projects, the progress we have made
in recent months, their confidence in our management and technical
team, and the potential for a near-term exploration success once we
drill the recently discovered Arabia porphyry target," commented
Hans Rasmussen, President and CEO. "IAMGOLD is an ideal partner.
They are a well-established gold mining company that is aggressive,
fast-acting and very keen on adding a Colombian project to their
repertoire of mining ventures all over the world. Their technical
teams have visited the Fredonia and Venecia projects during the
last two years and have observed our progress towards defining a
porphyry gold-copper system. In addition to funding exploration,
IAMGOLD will work with our management to provide technical input
and assistance with the community and social responsibility
programs, which further confirms their commitment to making the
Fredonia and Venecia projects successful."
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically
exploring, developing and monetizing promising new gold projects in
Colombia as well as realizing the potential of its 100
percent-owned San Simon project in Bolivia. The Company employs a
team of seasoned geologists, each with 20+ years of experience
exploring and discovering this type of porphyry deposit around the
world, including Argentina, Mexico, Alaska, Indonesia, and Eastern
Europe.
Along with a strong working capital position, the Company will
accelerate the exploration programs at the Fredonia and Venecia
projects where it has optioned over 34,000 hectares located in the
Cauca River Valley. Situated approximately 40 km south of the city
of Medellin, in Antioquia Province, the properties are positioned
within the Middle Cauca Belt, which is the most prolific gold belt
in Colombia with more than 500 years of gold mining history and
several new gold discoveries.
If you would prefer to receive news releases via email please
contact Colombia Crest (info@ColombiaCrestGold.com) and specify
"Colombia Crest news" in the subject line.
Please visit the Company's website at
www.ColombiaCrestGold.com.
Neither the TSX Venture nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Colombia Crest Gold Corp. Hans Rasmussen President and
CEO 604-684-7160hans@colombiacrestgold.comwww.ColombiaCrestGold.com
Progressive Investor Relations Benjamin Curry
604-689-2881ben@progressive-ir.com
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