Colombian Mines Grants Purchase Option for Anori Concession in Colombia
VANCOUVER, BC--(Marketwired - October 17, 2016) - Colombian Mines Corp. (TSX VENTURE: CMJ) (FRANKFURT: X6C) ("Colombian Mines" or the "Company") is pleased to announce it has granted an option to purchase (the "Agreement") the Company's Anori project to a private Colombian party (the "Buyer") for $820,000 USD.
Under the terms of the Agreement, the Buyer may purchase a 100% interest in the Anori Concession Contract subject to a permanent one and one half percent (1.5%) Net Smelter Returns ("NSR") royalty on production from the Anori Concession. The Buyer assumes all responsibility for maintaining the mineral title and fulfilling all obligations and requirements related thereto. The Anori Concession surrounds the Buyer's Mina Solferino, a high grade, fully permitted, underground mine and 100 tonne per day milling operation, on three sides, the fourth side being a large hydroelectric reservoir that is not open to mineral entry under Colombian Law.
The Buyer has granted Colombian Mines a second royalty equal to five per cent (5%) NSR on production from all of the Buyer's properties within 5 kilometers of the Anori Concession Contract including that from Mina Solferino as surety that the Buyer will perform all obligations as set forth in the Agreement. This second royalty will not affect any production from Buyer's properties during the 30 months after the signing of the Agreement and it will extinguish upon the Buyer exercising either of the purchase option's or upon the Buyer returning the Anori Concession Contract in as good condition as it was received from Colombian Mines on or before the date that is 30 months after the signing of the Agreement. Should the Buyer fail to fulfill these conditions the five per cent (5%) NSR will become permanent including a five per cent (5%) NSR royalty on production from Mina Solferino.
Colombian Mines will receive scheduled cash payments including an initial Option Payment of $20,000 USD which has already been received. The remaining payment schedule calls for Colombian Mines to receive a second payment of $50,000 USD on or before the first anniversary of the Agreement and a final payment of $750,000 USD within 30 months of signing the Agreement. Colombian Mines has further granted the Buyer an "Early Purchase Option" such that the Buyer can purchase the Anori property by paying Colombian Mines $320,000 USD including the initial Option Payment within six (6) months of the date of signing the Agreement.
The sale of Anori continues management's program of monetizing non-core assets.
Mr. Robert G. Carrington, P. Geo. and R. P. Engineering Geologist, a Qualified Person as defined by National Instrument 43-101 and President of the Company, has reviewed and verified the technical information contained in this news release.
About Colombian Mines Corporation: Colombian Mines Corp. is an aggressive exploration and development company focused on near to intermediate term production opportunities in favorable jurisdictions including Nevada, Colombia and Colorado. Focused on developing shareholder value through exploration and development of key projects, the Company is also one of Colombia's leading "prospect generators". Further information can be found on our website at www.colombianmines.com.
Signed: "Robert G. Carrington"
President & CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement:
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Colombian Mines Corp.. Actual results may differ materially from those currently anticipated in such statements.
Contact
FOR FURTHER INFORMATION CONTACT:
Sharon Hebgin
Corporate Communications
Phone: 604-669-0868 or 760-898-9129
Email: info@colombianmines.com
Dave Cross
Chief Financial Officer and Corporate Secretary
Phone: 604-558-4300
Email: dcross@crossdavis.com
Website: www.colombianmines.com