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