DIEPPE, NB, Nov. 13, 2019 /CNW/ - (CBI-TSXV) Colibri Resource
Corporation ("Colibri" or the "Company") wishes to announce that it
has entered into a loan agreement with Agnico Eagle Mines Limited
("Agnico Eagle") for proceeds of $300,000
USD (approximately: $400,000
CAD).
Proceeds of the loan will be primarily used for exploration
activities at the Company's Evelyn and El
Mezquite gold projects as well as for general working
capital purposes.
Loan Particulars
Term: 2 years
Interest: 10% compounded annually - payable at maturity
Security: Colibri's joint venture interest in its "Pitaya" joint
venture with Agnico Eagle
"These loan proceeds, in addition to the anticipated receipt of
funds of the first year payment of $100,000 CAD from Colibri's recently announced
option agreement with Tocvan Ventures, will allow the Company to
complete a maiden drilling program at Evelyn in the very near term.
In addition, we will advance El
Mezquite to drill program readiness in early 2020" says
Colibri's COO Ian McGavney.
In conjunction with the loan from Agnico Eagle, Colibri also
wishes to announce that it has granted a two-year extension to its
agreement with Agnico Eagle (announced December 5th, 2018) allowing Agnico
Eagle to exclusively explore opportunities to dispose of Colibri's
working interest in its joint venture with Agnico Eagle on the
6,564 hectare Pitaya project (the "Project") near Caborca in
Sonora, Mexico (a "Sale
Transaction"). Agnico Eagle may now initiate and manage the sales
process as well as negotiate, agree to and complete a Sale
Transaction on behalf of Colibri at any time prior to November 8, 2021.
Notwithstanding any provision of the existing Earn-In Agreement
between the Company and Agnico Eagle, the Company shall receive the
following consideration in connection with a Sale Transaction and
the disposition of its interest in the Project:
- in the event that the consideration in connection with a Sale
Transaction is cash, securities or a combination of cash and
securities the Company will receive its proportionate share of such
consideration based on its joint venture interest in the Project;
and
- in the event that the consideration in connection with a Sale
Transaction is anything other than cash or securities, the Company
will receive a lump sum cash payment from Agnico Eagle in the
amount of $500,000 USD, which amount
will represent all consideration payable to the Company in
connection with such Sale Transaction and the disposition of the
Project.
Note: Should Agnico Eagle complete a Sale Transaction for the
Project before the completion of the above mention loan period,
Colibri's debt will be retired and the balance of the proceeds, if
any, less interest owed will be forwarded to Colibri.
No compensation is expected to be paid by Colibri to Agnico
Eagle upon a successful Sale Transaction.
For more information about all of our projects please visit:
www.colibriresource.com.
We seek safe harbour.
About Colibri Resource Corporation:
Colibri Resource Corp. is a Canadian mineral exploration company
listed on the TSX Venture Exchange trading under the symbol CBI and
is focused on acquiring and exploring prospective gold properties
in Mexico.
The TSX Venture Exchange has neither approved nor disapproved
the contents of this news release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. The statements made in
this news release may contain forward-looking statements that may
involve a number of risks and uncertainties. Actual events or
results could differ materially from the Company's expectations and
projections.
SOURCE Colibri Resource Corporation
