Colorado Resources Explores Strategic Alternatives

World News: . []

VANCOUVER, British Columbia, Sept. 14, 2018 (GLOBE NEWSWIRE) -- Colorado Resources Ltd. (“” or the “”) (TSXV – CXO) announces commencement of a review of strategic alternatives to enhance shareholder value.

As part of the review process, the Company has engaged Fort Capital, an independent financial advisory company specializing in providing advice to resource companies, to assist the Board in its evaluation of alternatives available to the Company.

The Company has not set a definitive timeline to complete its identification, examination and consideration of opportunities.  Furthermore, this review has not been initiated as a result of receiving any transaction proposal. Given the nature of the process, the Company does not intend to provide updates with respect to the process until such time as the Board approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is advisable. The Company cautions that there are no guarantees that the review of strategic alternatives will result in a transaction or if a transaction is undertaken, as to its terms or timing.

The Company will look to complete its 2018 exploration field season and preserve its working capital, while sustaining the Company's efforts to evaluate and pursue any strategic alternative.

As part of a its strategic alternative review, it has entered into a loan agreement (the "") with Goldcorp Inc. (“”) for a loan in the amount of $500,000 (the ""). Proceeds from the Loan will be used for general working capital purposes while the Company reviews various alternatives available for its future development and maximization of shareholder value.

Colorado’s President and CEO, Robert Shaw, states: “Goldcorp’s ongoing support provides Colorado with interim working capital while it evaluates a number of options going forward. We believe that the current trading price of Colorado’s shares does not reflect the value of our mineral exploration assets, consequently Colorado’s Board has determined it is timely, and in the best interests of the Company and its shareholders to explore strategic alternatives.”

Terms of the Loan include interest at a rate of 8% per annum compounded monthly, a maximum term of twelve months, maturing on September 13, 2019 (the "") with early repayment provisions and is secured against the Company's KSP, Kinaskan-Castle and North ROK properties.

Additional terms include the Company’s option to pay interest in cash or, subject to the approval of the TSX Venture Exchange (the ""), in shares (the “”).  The issue price of any Interest Shares will be the lower of the 10-day volume weighted average price and the closing price of Colorado's common shares on the last trading day prior to payment.

As a condition for providing the Loan and subject to the approval of the Exchange, the Company has agreed to issue to Goldcorp common shares as a bonus (the "), as follows:

Robert ShawPresident and Chief Executive Officer

More news and information about Colorado Resources Ltd.

Published By:

Globe Newswire: 22:01 GMT Friday 14th September 2018

Published: .

Search for other references to "colorado" on SPi News


Share

Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
 
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 0751938.
 
Privacy Policy | Terms and Conditions | Contact Us