Under the terms of the agreement Tocvan has now advanced the first year's cash payment of $125,000 to Colibri and issued 2,000,000 common shares of Tocvan to Colibri
Colibri Resource Corporation (“Colibri” or the “Company”) wishes to announce that Tocvan Ventures has completed all necessary due diligence and has finalized their option agreement dated September 22nd with Colibri. The agreement allows Tocvan to acquire 51% interest in the Pilar project located in Sonora Mexico.
Under the terms of the agreement Tocvan has now advanced the first year’s cash payment of $125,000 to Colibri and issued 2,000,000 common shares of Tocvan to Colibri. Under the terms of the agreement Tocvan must now complete $2,000,000 of exploration on the property over five years, advance Colibri an additional $275,000 over the 5-year period with $50,000 due on the 1st anniversary date of the agreement and $75,000 due on the 3rd, 4th and 5th anniversary dates. Tocvan will also issue an additional 1,000,000 shares of the corporation to Colibri on the 3rd, 4th and 5th anniversary dates.
Once the above is satisfied Tocvan will have earned a 51% interest in the property and have the option to acquire the additional 49% interest by making a further $2,000,000 payment to Colibri and issuing a 2% NSR within 6 months of fulfilling the obligations listed above.
Mark Smethurst, a Director of Tocvan, commented: “The Pilar property has the right features and system to allow for great potential in defining a multimillion-ounce property.”
Ian McGavney, Colibri’s COO states: “The conclusion of this deal is significant for Colibri as the Company can now firmly focus on advancing its highly prospective Evelyn and El Mezquite gold projects to drilling phases. Colibri will continue to hold a significant interest in Pilar by way of owning a material amount of Tocvan shares and not need to dilute its own share structure to appreciate its upside.”
Colibri management anticipates near term news releases highlighting structure, mineralization and its path to drilling at Evelyn.
Source: Company Press Release