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Colorado Goldfields Inc. Announces Agreement With State of Colorado's DRMS for Pride of the West Mill
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LAKEWOOD, CO--(Marketwire - February 8, 2011) - Colorado Goldfields Inc. (OTCBB: CGFIA) announced today that the Company has reached an agreement with the State of Colorado Division of Reclamation Mining and Safety ("DRMS"), to extend the time required to fully fund a $196,000 increase to the Company's financial warranty from February, 2011 to June, 2011.
The financial warranty is in effect a surety bond that serves to guarantee the ultimate reclamation of the site. The joint stipulation between the Company and the State of Colorado DRMS calls for four payments of approximately $49,000 beginning in March, 2011 and ending in June, 2011. Colorado Goldfields will have posted a total Financial Warranty of $515,130 as of June, 2011. The Company has successfully identified the funding source for the required payments, which will place the Company in compliance with the financial warranty increase requirements.
As stated in the June 3, 2010 press release, "the Company closed a funding arrangement with an institutional investor in the amount of $1 million. The financing will, over the course of the facility timeline, provide funding for the Company's aged debt and for working capital requirements including work detail on the reactivation of The Pride of the West Mill."
"It is very gratifying to see this kind of progress both in the financial and operations areas. The extension of the financial warranty requirement is the kind of tangible support that reaffirms our belief that our business plan is sound, and that we are certainly on the right track," stated Stephen Guyer, CFO of Colorado Goldfields.
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