Colibri Resource Corporation Arranges Loan from Agnico Eagle Mines Limited
Colibri Resource Corporation Arranges Loan
from Agnico Eagle Mines Limited
DIEPPE, NB
,
Nov. 13, 2019
/CNW/ - (CBI-TSXV) Colibri Resource Corporation ("Colibri" or the
"Company") wishes to announce that it has entered into a loan agreement with Agnico Eagle Mines
Limited ("Agnico Eagle") for proceeds of
$300,000 USD
(approximately:
$400,000
CAD).
Proceeds of the loan will be primarily used for exploration activities at the Company's Evelyn and
El
Mezquite
gold projects as well as for general working capital purposes.
Loan Particulars
Term: 2 years
Interest: 10% compounded annually - payable at maturity
Security: Colibri's joint venture interest in its "Pitaya" joint venture with Agnico Eagle
"These loan proceeds, in addition to the anticipated receipt of funds of the first year payment of
$100,000
CAD from Colibri's recently announced option agreement with Tocvan Ventures, will allow
the Company to complete a maiden drilling program at Evelyn in the very near term. In addition, we
will advance
El Mezquite
to drill program readiness in early 2020" says Colibri's COO
Ian
McGavney
.
In conjunction with the loan from Agnico Eagle, Colibri also wishes to announce that it has granted a
two-year extension to its agreement with Agnico Eagle (announced
December 5
th
, 2018) allowing
Agnico Eagle to exclusively explore opportunities to dispose of Colibri's working interest in its joint
venture with Agnico Eagle on the 6,564 hectare Pitaya project (the "Project") near Caborca in
Sonora, Mexico
(a "Sale Transaction"). Agnico Eagle may now initiate and manage the sales
process as well as negotiate, agree to and complete a Sale Transaction on behalf of Colibri at any
time prior to
November 8, 2021
.
Notwithstanding any provision of the existing Earn-In Agreement between the Company and Agnico
Eagle, the Company shall receive the following consideration in connection with a Sale Transaction
and the disposition of its interest in the Project:
in the event that the consideration in connection with a Sale Transaction is cash, securities or a
combination of cash and securities the Company will receive its proportionate share of such
consideration based on its joint venture interest in the Project; and
in the event that the consideration in connection with a Sale Transaction is anything other than
cash or securities, the Company will receive a lump sum cash payment from Agnico Eagle in the
amount of
$500,000 USD
, which amount will represent all consideration payable to the
Company in connection with such Sale Transaction and the disposition of the Project.
Note
: Should Agnico Eagle complete a Sale Transaction for the Project before the completion of the
above mention loan period, Colibri's debt will be retired and the balance of the proceeds, if any, less
interest owed will be forwarded to Colibri.
No compensation is expected to be paid by Colibri to Agnico Eagle upon a successful Sale
Transaction.
For more information about all of our projects please visit:
www.colibriresource.com
.
We seek safe harbour.
About Colibri Resource Corporation:
Colibri Resource Corp. is a Canadian mineral exploration company listed on the TSX Venture
Exchange trading under the symbol CBI and is focused on acquiring and exploring prospective gold
properties in
Mexico
.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
Neither 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. The statements made in this news release may contain forward-looking statements that
may involve a number of risks and uncertainties. Actual events or results could differ materially from
the Company's expectations and projections.
SOURCE
Colibri Resource Corporation
View original content:
http://www.newswire.ca/en/releases/archive/November2019/13/c0610.html
%SEDAR: 00021936E
For further information:
Ronald J. Goguen, President, Chairperson and Director, Tel:(506) 383-
4274, [email protected]
CO: Colibri Resource Corporation
CNW 13:07e 13-NOV-19