TSX-V: CXO
VANCOUVER, Aug. 19, 2019 /CNW/ - Colorado Resources
Ltd. (TSX.V: CXO) ("Colorado") announces that it has completed
a financing of an aggregate of 15,267,855 flow-through subscription
receipts issued at a price of $0.12
per subscription receipt and 22,069,928 non-flow-through
subscription receipts at a price of $0.085 per subscription receipt for aggregate
gross proceeds of approximately $3,708,086 (the "Financing"). The net
proceeds of the Financing will be held in escrow and released in
connection with the satisfaction of the escrow release conditions
by Colorado upon the successful
completion of the previously announced plan of arrangement (the
"Arrangement") under the Business Corporations Act
(British Columbia), pursuant to
which Colorado will acquire all of
the issued and outstanding common shares (each, a "Buckingham Share") of Buckingham Copper
Corp. ("Buckingham"), and, in exchange, shareholders
of Buckingham will receive 0.5 of a common share of Colorado for each Buckingham Share held (the
"Transaction").
Closing of the Transaction is expected to occur on August 20, 2019.
Colorado intends to use the net
proceeds of the Financing to complete work on the Kinaskan-Castle
Property, for working capital and general corporate expenditures,
and to repay a loan.
About Colorado
Colorado Resources Ltd. is
currently engaged in the business of mineral exploration for the
purpose of acquiring and advancing mineral properties located in
the "Golden Triangle" British Columbia. Colorado's main exploration projects within
British Columbia include KSP,
North ROK, Kingpin and Kinaskan-Castle.
On behalf of the Board of Directors of Colorado Resources
Ltd
"Cecil Bond"
Cecil Bond
Director
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding Forward-Looking
Information
All statements, trend analysis and other information
contained in this press release about anticipated future events or
results constitute forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate",
"expect" and "intend" and statements that an event or result "may",
"will", "should", "could" or "might" occur or be achieved and other
similar expressions. All statements, other than statements of
historical fact, included herein, including, without limitation,
statements regarding anticipated benefits of the Transaction, are
forward-looking statements. Although Colorado and Buckingham (the "Companies")
believe that the expectations reflected in such forward-looking
statements and/or information are reasonable, undue reliance should
not be placed on forward-looking statements since the Companies can
give no assurance that such expectations will prove to be correct.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the risks, uncertainties and other factors
identified in the Companies' periodic filings with Canadian
securities regulators. Important factors that could cause actual
results to differ materially from Colorado or Buckingham's expectations include
risks associated with the completion of the Transaction; business
of Colorado and Buckingham; risks
related to exploration and potential development of Colorado and Buckingham's projects; business
and economic conditions in the mining industry generally;
fluctuations in commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; the need for
cooperation of government agencies and native groups in the
exploration and development of properties and the issuance of
required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and
other governmental approvals; and other risk factors as detailed
from time to time and additional risks identified in Colorado and Buckingham's filings with
Canadian securities regulators on SEDAR in Canada (available at www.sedar.com).
Forward-looking statements are based on estimates and opinions of
management at the date the statements are made. Neither
Colorado nor Buckingham undertakes
any obligation to update forward-looking statements except as
required by applicable securities laws. Investors should not place
undue reliance on forward-looking statements.
SOURCE Colorado Resources Ltd.