Colorado Closes Financing for $3.67M

by pmnationtalk on March 20, 2017142 Views

March 17, 2017

COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) announces it is has completed its previously announced non-brokered private placement (see news February 16, 2017) for an aggregate of 745,000 units of the Company (the “Units”) at an issue price of $0.32 per Unit and 8,180,000 flow-through units (the “Flow-Through Units”) at an issue price of $0.42 per Flow-Through Unit for aggregate gross proceeds of $3,674,000 (the “Offering”).

Each Unit consists of one common share in the capital of the Company (a “Common Share”) and one–half of one non-transferable Common Share purchase warrant (each whole warrant a “Warrant”), with each Warrant entitling the holder thereof to acquire an additional Common Share at an exercise price of $0.50 until September 17, 2019.

Each Flow-Through Unit consists of one flow-through common share of the Company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) (a “FT Share”) and one–half of one non-transferable non-flow through common share purchase warrant (each whole warrant a “NFT Warrant”).  Each NFT Warrant entitles the holder thereof to purchase one additional common share of the Company (a “NFT Warrant Share”) at an exercise price of $0.50 per NFT Warrant Share until September 17, 2019.

All of the Common Shares and FT Shares issued in connection with the Offering and any NFT Warrant Shares issued on exercise of the NFT Warrants will be subject to a restricted resale period that expires on July 18, 2017.

In connection with the Offering the Company paid aggregate finders’ fees of $198,690 cash and issued to finders 441,300 warrants at an exercise price of $0.32 and 41,700 warrants at an exercise price of $0.42 (collectively the “Finder Warrants”). Each Finder Warrant is otherwise exercisable on the same terms as the warrants issued to investors in the Offering.

The Company intends to expend the proceeds from the Flow-Through Units for exploration on the Company’s Canadian properties, and the proceeds from the Units will be for general working capital purposes.

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 Nevada.

Colorado’s main BC exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100% owned Kingpin property and  the 100% owned North ROK property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.


“Adam Travis”

Adam Travis

President and Chief Executive Officer

For more information, please contact:

Colorado Resources Ltd.
Alex Blanchard, VP Corporate Development
T: (250) 768-1511
F: (250) 768-0849
TF (855) 768-1511


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