The combined company will hold over 120,578 hectares of mineral tenure in the Golden Triangle with initial exploration focused on the Kinaskan-Castle-Moat property.


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Colorado Resources Ltd. (TSX.V: CXO) (“Colorado”) and Buckingham Copper Corp. (“Buckingham”), announce that they have completed their previously announced plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia), pursuant to which Colorado acquired all of the issued and outstanding common shares of Buckingham (each, a “Buckingham Share”), and, in exchange, shareholders of Buckingham received 0.5 of a common share of Colorado for each Buckingham Share held (the “Transaction”).

Joseph Mullin, the incoming CEO of Colorado, commented: “We are excited to have completed the Plan of Arrangement between Colorado and Buckingham. Our exploration program will begin immediately. My team and I have assumed the management of day to day operations. It is a great time to be advancing exploration on Colorado’s top tier assets in BC’s Golden Triangle.”

The combined company will hold over 120,578 hectares of mineral tenure in the Golden Triangle with initial exploration focused on the Kinaskan-Castle-Moat property.

Upon the completion of the Transaction, the five-member board of directors of Colorado (the “Colorado Board”) was reconstituted by the addition of Michael Cathro and Dr. Fletcher Morgan to the existing Colorado Board, which was previously comprised of Cecil Bond, Alastair Still and Bryan Wilson. In addition, Colorado’s new management team now consists of Joseph Mullin, Chief Executive Officer, and recently appointed Chief Financial Officer, Eric Casey, with a team of consultants and technical advisors consisting of Justin Himmelright B.Sc, M.Eng., Mark Rebagliati B.Sc., P.Eng. and Dr. James Oliver, Ph.D. P.Geo.

As previously announced on August 19, 2019, Colorado completed a financing of an aggregate of 15,267,855 flow-through subscription receipts at a price of $0.12 per subscription receipt and 22,069,928 non-flow-through subscription receipts at a price of $0.085 for aggregate gross proceeds of approximately $3,708,086 (the “Financing”). The proceeds of the Financing will be released to Colorado today in connection with the satisfaction of the escrow release conditions by Colorado through its successful completion of the Transaction and the common shares and warrants underlying the subscription receipts will be issued to the holders thereof. In connection with the Financing, Newmont Goldcorp Corp. has agreed to exercise its pre-emptive right and subscribed for 6,336,717 units of Colorado at a price of $0.085 per unit for aggregate proceeds of $538,612, with each unit consisting of one common share and 0.5 of a warrant issued on the same terms as the warrants underlying the subscription receipts. Colorado would like to thank Newmont Goldcorp for its continued support.

Colorado intends to use the net proceeds of the Financing to complete work on the Kinaskan-Castle-Moat Property, for working capital and general corporate expenditures, and to repay the Newmont Goldcorp loan provided in September 2018. In connection with the Financing, Colorado paid a finder’s fee in the amount of $82,140 and issued an aggregate of 688,885 warrants to certain finders arm’s length to Colorado. Each finder’s warrant is exercisable for one common share at a price of either $0.12 or $0.15 per share for a period of three years. Fort Capital Partners advised Colorado on this Transaction.

Immediately prior to the closing of the Transaction, Colorado did not hold, directly or indirectly, any common shares of Buckingham. Immediately following the closing of the Transaction, Colorado owns all of the common shares of Buckingham. Colorado acquired the common shares described in this press release for investment purposes. A copy of the early warning report to be filed by Colorado in connection with the Transaction will be available on SEDAR under Buckingham’s SEDAR profile. This news release is issued under the early warning provisions of Canadian securities legislation.

Source: Company Press Release