Vancouver, British Columbia, Canada. October 2, 2009. Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver" or the "Company") is pleased to announce that it has closed the second tranche of its private placement, bringing the total raised to $1,591,773. Under the second tranche, the Company raised $536,023 through the issuance of 5,360,230 units at a price of $0.10 per unit, with each unit comprised of one common share and one common share purchase warrant exercisable at a price of $0.20 per warrant share for a period of 2 years.
Finders' fees were payable in connection with the second tranche of the private placement, equal to an aggregate of $59,947 and 599,473 non-transferable finder's warrants exercisable at a price of $0.20 per finder's warrant share for a period of 2 years.
All of the securities issued under the second tranche of the private placement are subject to a four-month hold period expiring on February 2, 2010, with additional hold periods applicable to US investors.
The proceeds of the private placement will be used for exploration at the Company's Mogollon Property in New Mexico, and for working capital requirements.
About Columbus Silver
Columbus Silver is a silver exploration and development company operating in the Western United States possessing an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of mining projects.
Columbus Silver's project activities are managed on an exclusive basis by Cordex, owned and operated by John Livermore and Andy Wallace who have a long and successful history of discovery and mine development in the United States. Columbus Silver maintains active generative (prospecting) and evaluation programs and currently controls a 100% interest in 8 silver properties in Utah, Arizona, New Mexico and Nevada.
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 Company's use of proceeds of the private placement and when and if it will close the second tranche of the private placement. 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 complete the private placement; ability to locate and dependence on finders; availability of qualified workers; risks associated with exploration projects; 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: general business and economic conditions; the ability to locate sufficient purchasers (and if applicable, finders) to complete the private placement; the timing and receipt of required approvals; ability to procure equipment and supplies; 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.