TSX-V: CXO
VANCOUVER, June 9, 2020 /CNW/ - COLORADO RESOURCES
LTD. (TSX-V: CXO) ("Colorado" or the "Company") is
pleased to provide an update on the expansion of its 2020
exploration program to just under $1,000,000 of Flow Through eligible expenditures,
which is fully funded. Joseph Mullin
comments: "While the outbreak of COVID-19 negatively affected
our original exploration plans for 2020, the effort to control the
spread of the virus in British
Columbia by the Province and Tahltan Central Government has
been nothing short of remarkable. These efforts have enabled us to
expand our modest 2020 exploration program whilst remaining
vigilant and adhering to the advice and guidelines regarding
ongoing infectious disease risk mitigation and control. Work will
be focused at our Castle property in the Moat, Castle East and
Castle South target areas at the Company's eastern claim boundary
bordering GT Gold Corp's properties. Field work here will seek to
resolve open soil geochemical and IP chargeability anomalies along
strike from high-grade gold-silver mineralization at Saddle South
and the porphyry Cu-Au system at Saddle North. As well, initial
field work is proposed for the Sofia porphryry Cu-Au project in the
Toodoggone. No work is planned on North ROK (Mabon) deposit
or at ROK-Coyote which borders the Red Chris operating
mine."
Since the merger between Colorado and Buckingham Copper Corp. in
August 2019 (see NR of August 20, 2019), the new Colorado leadership team has continued to
undertake a comprehensive strategic review of the Company and its
assets, whilst its technical team has worked hard to recompile and
review the large amount of data from the previous 8 years and over
$37 million of acquisitions and
exploration. The objective is a renewed corporate profile and
prioritized exploration targeting towards drilling in 2021.
Colorado is pleased to announce
the appointment, effective immediately, of Mr. David Fleming as interim Vice President of
Exploration of the Company. Mr. Fleming has over 35 years'
experience in the generation, management and implementation of
successful mineral exploration throughout North America. He began his career with Amax
Minerals/Canamax Resources Inc., an exploration group responsible
for Yukon exploration and
development at the Ketza River Gold Mine and Sa Dena Hes
zinclead-silver mine. Mr. Fleming has worked with several major
mining companies, including Cyprus Canada and Kennecott Canada.
More recently, he was part of exploration and development at the
Meadowbank Gold Deposit with Cumberland Resources Ltd. (acquired by
Agnico-Eagle Mines Ltd. in 2007) as well as Vice President of
Exploration for Foran Mining from 2011 to 2018. Mr. Fleming is a
Professional Geoscientist with the APEGBC and holds a B.Sc. from
the University of British Columbia.
Colorado CEO, Joseph Mullin
comments: "Dave has been working with Colorado for a number of months as a technical
advisor. We are very pleased that he has agreed to join our
Management group and guide our technical team using his industry
and regional expertise that he has gained over the past 35
years.
"We expect further announcements in the coming months as we
continue to build our leadership and technical team."
As part of management strategy for rebuilding the Company, the
Board of Directors (the "Board") has passed a resolution calling a
Special General Meeting (the "SGM") in order to seek shareholder
approval to consolidate its existing shares on the basis of 10
(old) for 1 (new) share. The resultant increase in share price is
expected to allow the Company to attract new institutional
investors. In addition, the Company is seeking shareholder approval
to change the name of the Company. The Company is currently
reviewing options fo a new name which will be finalized following
shareholder approval. The SGM is scheduled for July 21, 2020 and, subject to approval of
shareholders and the TSX Venture Exchange, the share consolidation
and name change would take place shortly thereafter.
A Notice of Meeting has been filed on SEDAR and the information
circular to shareholders is expected to be mailed no later than
June 23, 2020.
Dr. Fletcher Morgan, Colorado's
Chairman, comments, "We are aiming to complete a relaunch of the
Company by the end of July so that the new team we're building can
stay 100% focused on delivering a comprehensive and targeted drill
program for 2021. It's an important step in our ongoing effort to
rebuild the Company and realize value for shareholders from our
extraordinary land position strategically located in the Golden
Triangle of BC that we sincerely hope shareholders will
support."
We seek safe harbor.
About Colorado
Colorado Resources Ltd. is exploring for high-grade gold and
copper in the Golden Triangle and the Toodoggone area of
British Columbia. The portfolio
includes the flagship Castle property, a porphyry copper-gold
project located in the Red Chris mining district of the Golden
Triangle neighbouring GT Gold's Tatogga property. Other properties
include the KSP, North ROK/ROK-Coyote, Kingpin, Heart Peaks and
Sofia properties in British Columbia. These assets are being
advanced by a newly assembled technical and management team with
experience in exploration, permitting and discovery.
ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.
"Joseph
Mullin"
Joseph Mullin
Chief Executive Officer and Director
Cautionary Note Regarding Forward-Looking
Statements
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, statements regarding
the use of proceeds of the Placements are forward-looking
statements. Although the Company 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 Company 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 as well as the
risk that the ongoing COVID-19 pandemic may have on the Company's
business. Important factors that could cause actual results to
differ materially from Colorado
expectations include the risk that management of the Company
determines to use the proceeds of the Placements in a way that is
not currently contemplated. Forward-looking statements are
based on estimates and opinions of management at the date the
statements are made. Colorado does
not undertake any obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements.
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.
SOURCE Colorado Resources Ltd.