Columbus Gold to Receive $3.6 Million Subject to Completion of Sale of Columbus Silver; Sale Approved by Shareholders
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/12 -- Columbus Gold Corporation (TSX VENTURE: CGT) ("Columbus Gold") is pleased to announce that Columbus Silver Corporation (TSX VENTURE: CSC) (Columbus Silver") has reported the results of its 2012 Annual General Meeting (the "Meeting"). According to Columbus Silver, well over 99% of the votes cast at the Meeting were in favour of Santa Fe Gold Corporation ("Santa Fe") acquiring all of Columbus Silver's outstanding common shares ("Shares") for $0.20 each (the "Acquisition"). Columbus Gold abstained from voting at the Meeting.
If the Acquisition completes, Columbus Gold expects to be paid approximately $3,575,779 by Santa Fe in consideration for its 17,878,898 Shares. Columbus Gold understands that the Acquisition remains subject to a number of factors, including (a) Santa Fe obtaining financing in a sufficient amount to consummate the Acquisition; and (b) all necessary court and regulatory approvals of the Acquisition being obtained. For additional details, please see Columbus Silver's news release of March 22, 2012.
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 proposed Acquisition, proposed date of completion thereof, and transactions ancillary thereto. 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 authorizations; Santa Fe's ability to raise necessary financing to complete the Acquisition and in a timely fashion; obtaining final approval of the TSX Venture Exchange; obtaining court approval; obtaining applicable US approvals; cost increases; possibility of a competing offer arising; unforeseen circumstances; risks associated with the exploration projects or title thereto held by Columbus Silver; 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; that the required approvals mentioned above will occur; that Santa Fe will be able to obtain required financing in a timely fashion; the timing and receipt of required approvals; that required service providers will be available to assist with the transaction; that items required for mandated disclosure are available; general business and economic conditions; availability of financing; 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.
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)
info@columbusgoldcorp.com
www.columbusgoldcorp.com
