Columbus Gold Corporation Completes $1.95 Million Private Placement
Vancouver, British Columbia, Canada. July 13, 2010. Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce that it has closed the second and final tranche of the private placement previously announced on April 26, May 25, and June 28, 2010. In the second tranche, the Company raised gross proceeds of $1,020,650 through the issuance of 5,103,250 units at a price of $0.20 per unit; for both tranches of the private placement, the Company has raised aggregate gross proceeds of $1,947,150 and issued 9,735,750 units. Each unit is comprised of one common share and one transferable common share purchase warrant; each warrant is exercisable for a period of 18 months, with an exercise price per warrant share of $0.30 for the first 12 months increasing to $0.35 for the final 6 months of the exercise period. The second tranche warrants expire on January 9, 2012.
Finders’ fees were payable in connection with the second tranche of the private placement, equal to an aggregate of $86,160.25 and 430,801 non-transferable finder’s warrants. Other than transferability, the finders’ warrants are otherwise identical to the warrants that form part of the units.
All of the securities issued under the first tranche of the private placement are subject to a four-month hold period expiring on November 10, 2010 with additional hold periods applicable to US investors.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
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.
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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 Company’s use of proceeds of the private placement. 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 availability of qualified workers; risks associated with exploration projects; 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 ability to obtain, and the timing and receipt of, required approvals; ability to procure equipment and supplies; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.