VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/07/13 -- Columbus Gold Corp. (TSX VENTURE: CGT) ("Columbus Gold") is pleased to announce that it has exercised its option to acquire the existing 10% gross underlying royalty (the "Existing Royalty") on the Paul Isnard Gold Project previously held by Euro Ressources S.A. ("EURO"), a majority-owned indirect subsidiary of IAMGOLD Corporation.
In consideration for acquiring the royalty, Columbus Gold has issued to EURO 18,208,328 common shares (the "Shares"), paid $4.2 million and granted EURO a net smelter returns royalty of 1.8% on the first 2 million ounces of gold produced and 0.9% on the next 3 million ounces produced. Pursuant to Columbus Gold's agreement with Nordgold, Nordgold must reimburse to Columbus Gold the $4.2 million EURO payment by May 21, 2014.
For a period of 18 months from closing, EURO has agreed not to dispose of any of the Shares (except in connection with the payment of certain tax costs, if applicable, or with the prior written consent of Columbus Gold) or to acquire any additional shares of Columbus Gold. The Shares are also subject to a four-month hold period expiring on March 8, 2014 pursuant to applicable securities regulations.
ON BEHALF OF THE BOARD, Robert F. Giustra, Chairman & CEO
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.
This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting fulfillment of the obligations pursuant to the exercise of the option. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.
Columbus Gold Corp.