Colibri Resource Corporation Closes Private Placement
Suite 700-105 Englehart Street
Dieppe, New Brunswick E1A 8K2
Phone: 506-383-4274
Email: [email protected]
NEWS RELEASE
COLIBRI RESOURCE CORPORATION CLOSES PRIVATE PLACEMENT
DIEPPE, N.B., May 4, 2020 (CBI: TSX-V) – Colibri Resource Corporation (“Colibri” or the “Company”) is pleased to
announce that further to its news release of Ap ril 20, 2020, the Company has received final approval from TSXV
and closed a non-brokered private placement effective May 1, 2020 (the “Closing Date”). The Company has raised
$200,000 through the issuance of 8% Unsecured Convertible Redeemable Debentures (the “Debenture s”)
maturing on April 30, 2022 (the “Maturity Date”).
The Debentures bear interest at a rate of 8% per annum, calculated in Canadian dollars, payable in arrears
quarterly and upon maturity or redemption . The Debentures are convertible into common shares ("Common
Shares") of the Company, at the holder's option, at a price of (i) $0.05 per Common Share during the first year of
the Debentures ; and (ii) at $0. 10 per Common Share in the second year of the Debentures (the "Conversion
Price"), subject to adjustment in certain events, at any time prior to the Maturity Date. Please note that the
Company’s April 20, 2020 news release incorrectly disclosed a second year Conversion Price of $0.075. Also, any
accrued interest will be paid in cash only.
The Company will pay a finder’s fee of $7,500 to an arm’s length party. Proceeds from this private placement will
be used for working capital and drilling on the Evelyn and EI Mezquite projects.
As announced in its April 20, 2020 news release, a director has subscribed for $100,000 principal amount of
Debentures on the same terms as other placees, thereby making this portion of the private placement a "related
party transaction" as defined under Multilateral Instrument 61 -101 Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). This portion of the private placement will, however, be exempt from the need
to obtain minority shareholder and a formal valuation as required by MI 61 -101 as the Company is listed on the
TSX Venture Exchange and the fair market value of the Debentures to insiders or the consideration paid by insiders
of the Company does not exceed 25% of the Company's market capitalization.
The Debentures and any common shares issued on conversion are subject to resale restrictions until October 2,
2020 under applicable securities legislation.
About Colibri Resource Corporation
Colibri (https://www.colibriresource.com/) is a Canadian-based mineral exploration company listed on the TSX -
Venture Exchange (TSXV:CBI) focused on acquiring and exploring properties in Mexico. The Company currently
has five active exploration properties at various stages of exploration in Sonora State.
For further information, please contact:
Ronald J. Goguen, President, CEO and Director
Tel: (506) 383-4274
Forward-Looking Statements
The TSX Venture Exchange does not accept resp onsibility for the adequacy or accuracy of this release. No stock
exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein. This news release includes certain “forward -looking statements”. These statements are based
on information currently available to the Company and the Company provides no assurance that actual results
will meet management’s expectations. Forward - looking statements include estimates and statements that
describe the Co mpany's future plans, objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur. Forward-looking statements may be identified by such
terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since
forward-looking statements are based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results relating to, among o ther things, results of
exploration, project development, reclamation and capital costs of the Company's mineral properties, and the
Company’s financial condition and prospects, could differ materially from those currently anticipated in
such statements for many reasons such as: changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments; technological and operational difficulties
encountered in connection with the activities of the Company; and other matters discussed in this news release.
This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These
and other factors should be considered carefully, and readers should not place undue reliance on the Company’s
forward-looking statements. The Company does not undertake to update any forward-looking statement that may
be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.