Colombia Crest Gold Announces Loan Financing
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/04/13 -- Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE: CLB)(PINKSHEETS: ECRTF)(FRANKFURT: EAT) reports that it has entered into an agreement for a US$100,000 bridge loan (the "Loan") on the following terms:
1. The Loan will be repayable on demand, without interest, at any time after December 7, 2013. The Loan will not bear interest and will not be convertible.
2. As consideration for the Loan, the Company will issue 400,000 shares to the lender. The shares will be subject to a four month hold period after the date of the Loan advance.
3. As security for repayment of the Loan, the Company will assign to the lender the US$100,000 payment which will become due to the Company from Steinmar Ltda. ("Steinmar") on December 14, 2013 pursuant to that certain Share Purchase Agreement dated December 14, 2012 between the Company and Steinmar.
The proposed Loan is subject to acceptance by the TSX Venture Exchange. The lender is at arm's length from the Company. The Company intends to repay the Loan using funds to be raised by way of brokered and/or non-brokered private placements over the balance of 2013 or, in the alternative, by paying to the lender the US$100,000 payment due from Steinmar on December 14, 2013. No finder's fee will be paid in connection with the Loan.
The Company is borrowing the subject funds for working capital. It has recently filed notice of a proposed $281,000 working capital private placement with the Exchange (new release dated June 4, 2013), but requires additional funds to maintain its assets and operations. The private placement remains subject to acceptance by the Exchange.
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia. The Company is currently carrying on exploration programs at the Fredonia and Venecia projects where it has optioned over 27,700 hectares located approximately 40 km south of the city of Medellin, in Antioquia Province. The properties are positioned within the Middle Cauca Belt, the most prolific gold belt in Colombia with more than 500 years of gold mining history and several new gold discoveries.
If you would prefer to receive news releases via email please contact Colombia Crest (info@ColombiaCrestGold.com) and specify "Colombia Crest news" in the subject line.
Contacts:
Colombia Crest Gold Corp.
Hans Rasmussen
President and CEO
604-684-7160 or Cellular: 801-554-2074
hans@colombiacrestgold.com
Colombia Crest Gold Corp.
Chelsea Jones
Corporate Communications
Cellular: 604-354-2435
chelsea@colombiacrestgold.com
www.ColombiaCrestGold.com
