Colorado Amends Eldorado Agreement with Sunrise
April 29 2014 - 8:30AM
Marketwired
Colorado Amends Eldorado Agreement with Sunrise
WEST KELOWNA, BRITISH COLUMBIA--(Marketwired - Apr 29, 2014) -
COLORADO RESOURCES LTD. (TSX-VENTURE:CXO) ("Colorado" or the
"Company") is pleased to announce subject to TSX Venture Exchange
("Exchange") approval it has amended its Eldorado Option Agreement
with Sunrise Resources Ltd. (TSX-VENTURE:SHI) ("Sunrise") to
eliminate the 2014 minimum work commitments of $1,300,000 ("Amended
Option Agreement").
As announced October 4, 2012 the original consideration for the
Eldorado Option includes aggregate cash payments of $200,000
($100,000 paid to date) and exploration work commitments of
$4,000,000 ($1,330,000 incurred to date), over a 3-year period to
earn an initial 65% interest ("Initial Interest"). Colorado may
also earn an additional 10% interest my making a further cash
payment of $1,000,000. Upon Colorado acquiring the Initial
Interest, the parties will form a conventional joint venture which
will include the standard dilution clauses should either party
dilute their interest below 15% that party's interest will be
reduced to a 1% NSR which can be purchased in entirety for
$2,000,000.
Consideration for the Amended Option Agreement reducing the work
commitments by $1,300,000 includes:
- $75,000 cash payment (within 5 business days of Exchange
approval);
- 200,000 common shares (within 5 business days of Exchange
approval);
- a further 200,000 shares on or before September 26, 2014
(collectively the "Property Shares") should the parties continue
under the terms of the Option Agreement;
Furthermore the Amended Option Agreement includes a provision
wherein the deemed value of the Property Shares (calculated at the
Market Price as defined by the policies of the Exchange at the time
of issuance) will form part of the exploration expenditures and
shall be credited towards the remaining work commitments of $1.5M
to be incurred. All other terms and conditions of the Option
Agreement remain unchanged.
Pursuant to the Amended Option Agreement, the revised
consideration to earn the Initial Interest is as follows:
- aggregate cash payments of $175,000 ($75,000 as noted above;
$50,000 on each of the 2nd and 3rd anniversary of the Option
Agreement);
- aggregate share issuances of 400,000 common shares (as noted
above); and
- complete work commitments of $1,500,000 on or before the 3rd
anniversary of the Option Agreement).
Adam Travis, Colorado Resources Ltd President and CEO said, "We
have worked together with Sunrise in these times of fiscal
restraint to modify the agreement to our mutual benefit saving
Colorado at least $1.3 million in work commitments over the next
two years. This is especially important as we advance our two other
significant projects at North ROK and KSP."
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 British Columbia and is also
aggressively seeking opportunities in the U.S. southwest and Latin
America.
Colorado's current exploration focus is advancing its 100% owned
North ROK property, located 15 km's northwest of the Red Chris mine
development, and the recently acquired KSP property located 15 km's
along strike to the southeast of the past producing Snip Mine, both
located in northern British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES
LTD.
Adam Travis, President and Chief Executive Officer
NR 14-03
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this news release,
specifically the resource estimate and any future exploration work
at the North ROK project, constitute "forward-looking information"
as such term is used in applicable Canadian securities laws.
Forward-looking information is based on plans, expectations and
estimates of management at the date the information is provided and
is subject to certain factors and assumptions, including: that the
Company's financial condition and development plans do not change
as a result of unforeseen events, that the Company obtains required
regulatory approvals, that the mineralization at North ROK conforms
with the geological model as described in the Report, that the
Company continues to maintain a good relationship with the local
North ROK project communities, and that future metal prices reflect
or exceed those used in the resource estimate as a result of future
demand for metals. Forward-looking information is subject to a
variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking information. Factors that
could cause the forward-looking information in this news release to
change or to be inaccurate include, but are not limited to, the
risk that any of the assumptions referred to prove not to be valid
or reliable, which could result in delays, or cessation in planned
work, that the Company's financial condition and development plans
change, delays in regulatory approval, risks associated with the
interpretation of data, the geology, grade and continuity of
mineral deposits, the possibility that results will not be
consistent with the Company's expectations, as well as the other
risks and uncertainties applicable to mineral exploration and
development activities and to the Company as set forth in the
Company's Management's Discussion and Analysis reports filed under
the Company's profile at www.sedar.com. There can be no
assurance that any forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
the reader should not place any undue reliance on forward-looking
information or statements. The Company undertakes no obligation to
update forward-looking information or statements, other than as
required by applicable law.
Neither the 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.
Colorado Resources Ltd.Adam TravisPresident and Chief Executive
Officer(250) 768-1511 or TF: (855) 768-1511(250) 768-0849Colorado
Resources Ltd.Terese GieselmanChief Financial Officer(250) 768-1511
or TF: (855) 768-1511(250) 768-0849www.coloradoresources.com
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