Columbus Announces $2.5 Million Private Placement with Sandstorm
VANCOUVER, British Columbia, Oct. 21, 2019 (GLOBE NEWSWIRE) — Columbus Gold Corp. (CGT: TSX, CGTFF: OTCQX) (“Columbus”) is pleased to announce a non-brokered private placement (the “Sandstorm Private Placement”) for gross proceeds of CDN$2.5 million, fully subscribed by Sandstorm Gold Ltd. (TSX:SSL) (“Sandstorm”). After giving effect to the Sandstorm Private Placement, Sandstorm will hold approximately 8% of the outstanding common shares of Columbus.
Rock Lefrançois, President & CEO of Columbus, commented: “This significant investment from a sophisticated corporate investor such as Sandstorm is a strong endorsement of Columbus’ strategy in French Guiana.” Mr. Lefrançois further commented: “With funding in place, we have initiated exploration programs and will continue with an aggressive drill program”.The Sandstorm Private Placement* consists of two equal tranches for a total of 15,625,000 common shares of Columbus (the “Shares”) at a price of $0.16 per Share, with no warrants to be issued, nor any finders’ fees paid. In connection with the first tranche of the Sandstorm Private Placement, Columbus has agreed to grant to Sandstorm a 0.5% net smelter returns royalty from Columbus’ ownership interest on gold production from the Maripa gold project in French Guiana, if and when Columbus earns its interest in the project, and increasing up to 1% depending on Columbus’ interest in the project.The second tranche of the Sandstorm Private Placement will close upon Columbus signing a definitive option agreement on the Rhea gold project in French Guiana. A Letter of Intent was signed to acquire a 100% interest in Rhea (news release dated April 30, 2019) and a definitive agreement is expected to be fully executed soon. Columbus will grant to Sandstorm a 1% net smelter returns royalty on production from the Rhea project, if and when Columbus acquires its interest in the project.The Sandstorm Private Placement is subject to approval of the TSX. Sandstorm is acquiring the shares for investment purposes. Sandstorm may from time to time acquire additional securities of Columbus, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.About the Maripa Gold Project