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Colibri Announces Closing of Earn-In and Shareholders Agreement
Vancouver, British Columbia -- May 30, 2011. Colibri
Resource Corporation ("Colibri" or
the "Company") (TSX.V-CBI) is pleased to announce that all
of the conditions to the Earn-In and Shareholders Agreement dated
February 28, 2011, as amended on March 24, 2011 and April 14, 2011 (the
"Agreement") between the Company and Agnico-Eagle Mines Ltd.
("Agnico-Eagle") have been fulfilled.
Pursuant to the Agreement, Agnico-Eagle may acquire up to a 75% interest
in the Company's Colibri gold project in
Sonora, Mexico (the "Colibri
Project") and form a joint venture with the Company by making
qualified exploration expenditures and payments to Colibri.
To earn a 75% interest in the Colibri Project,
Agnico-Eagle is required to spend, over the next three years, a minimum
of US$3.0 million in exploration expenditures as well as complete a
positive feasibility study within five years. In addition, Agnico-Eagle
will be required to make option payments totaling US$1,452,000 over a
seven year period. After completion of the feasibility study and
Agnico-Eagle earning a 75% interest in the Colibri
Project, Agnico-Eagle and Colibri will form a
joint venture to develop the Colibri Project.
The conditions precedent that were required to be fulfilled included
approval of the TSX Venture Exchange ("TSX-V"), incorporation
of a Mexican wholly-owned subsidiary (the "Operating Company")
of a British Columbia company to hold the right, title and interest in
the Colibri Project and transfer of the
concessions comprising the Colibri Project to
the Operating Company.
Pursuant to the terms of the Agreement, Colibri
has also completed a private placement of three million units of the
Company (each, a "Unit") to Agnico-Eagle at a price of $0.20
per Unit for proceeds of $600,000 (the " Agnico-Eagle
Financing"). Each Unit issued consists of one common share (each, a
"Common Share") of the Company and one share purchase warrant
(each, a "Warrant") with each Warrant being exercisable into
one additional Common Share at an exercise price of $0.35 per Common
Share until May 27, 2013. All of the Common Shares and Warrants issued
pursuant to the Agnico-Eagle Financing are subject to a four-month hold
period which expires on September 28, 2011. The proceeds from the
Agnico-Eagle Financing will be used for general working capital for the
Company's operations in Sonora, Mexico including the previously announced
2000 meter drill program at the Ramard Silver
project near the municipality of Carbo, Sonora.
For Further Information Please Contact:
Lance Geselbracht, P.E., President and Chief
Executive Officer
Tel: (250) 755-7871
Web Site: www.colibriresourcecorp.com
Disclaimer for Forward-Looking Information:
Certain statements in
this release are forward-looking statements, which reflect the
expectations of management. Forward-looking statements consist of statements
that are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the future,
including but not limited the performance of Agnico's
obligations under the Agreement. Such statements are subject to risks and
uncertainties that may cause actual results, performance or developments
to differ materially from those contained in the statements. No assurance
can be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the Company
will obtain from them. These forward-looking statements reflect
management's current views and are based on certain expectations,
estimates and assumptions which may prove to be incorrect. A number of
risks and uncertainties could cause our actual results to differ
materially from those expressed or implied by the forward-looking
statements, including: (1) a downturn in general economic conditions in
North America and internationally, (2) the inherent uncertainties and
speculative nature associated with mineral exploration and production,
(3) a decreased demand for minerals, (4) any number of events or causes
which may delay or cease exploration and development of the Company's
property interests, such as environmental liabilities, weather,
mechanical failures, safety concerns and labor problems; (5) the risk
that the Company does not execute its business plan, (6) inability to
retain key employees, (7) inability to finance operations and growth, and
(8) other factors beyond the Company's control. These forward-looking
statements are made as of the date of this news release and, except as
required by law, the Company assumes no obligation to update these
forward-looking statements, or to update the reasons why actual results
differed from those projected in the forward-looking statements.
Neither 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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