VANCOUVER, BRITISH COLUMBIA, Nov 30, 2011 (MARKETWIRE via COMTEX) -- Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") is pleased to announce that it has sold its interest in the Summit gold project in Nevada ("Summit") to Agnico-Eagle (USA) Limited ("Agnico-Eagle") for US$8.5 million.
Robert Giustra, CEO, commented: "This transaction provides considerable cash to Columbus Gold. It represents a significant step forward in our ability to finance advancement of the Paul Isnard gold project in French Guiana, and does so without diluting the ownership of our shareholders."
Agnico-Eagle has been earning an initial 51% interest in Summit under an option agreement dated June 1, 2007 by undertaking exploration activities, and up to a 75% interest by, among other things, completing a bankable feasibility study. The option agreement between Agnico-Eagle and Columbus Gold has now been terminated and replaced with a definitive purchase and sale agreement providing for a 100% interest (subject to a 2% NSR royalty to Cordilleran Exploration Company) in the Summit Project to Agnico-Eagle for consideration of $8.5 million.
The completion of the Summit purchase and sale is subject to standard closing conditions, including the approval of the TSX Venture Exchange.
About Columbus Gold
Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Columbus Gold's president, Andy Wallace has a long and successful history of gold discovery and mine development. The company currently has 13 of its 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
ON BEHALF OF THE BOARD,
Robert F. Giustra, Chairman & CEO
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 the closing of the Summit purchase and sale. 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; the ability to satisfy all closing conditions on a timely basis or at all; cost increases; 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, including without limitation that of the TSX Venture Exchange; availability of Agnico-Eagle to finance the purchase and sale; 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.
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.
Contacts: Columbus Gold Corporation Investor Relations 604-634-0970 or Toll Free: 1-888-818-1364 604-634-0971 (FAX) email@example.com www.columbusgoldcorp.com SOURCE: Columbus Gold Corporation
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SUBJECT CODE: Manufacturing and Production:Mining and Metals