/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Jan. 18, 2017 /CNW/ - Columbus Gold Corp.
(CGT: TSX, CBGDF: OTCQX) ("Columbus") is pleased to announce
that it has entered into an agreement with Beacon Securities
Limited ("Beacon" or the "Underwriter"), to purchase,
on a "bought deal" basis, with a right to arrange for substitute
purchasers for, an aggregate of 8,000,000 common shares (the
"Offered Shares") in the capital of Columbus at a price of $0.63 per Offered Share (the "Issue
Price") for aggregate gross proceeds of $5,040,000 (the "Offering").
The closing of the Offering is expected to occur on or about
February 7, 2017 and is subject to
the completion of formal documentation and receipt of regulatory
approval, including the approval of the Toronto Stock Exchange. The
net proceeds received by Columbus
from the sale of the Offered Shares will be used to carry-out an
exploration drilling program at its Montagne d'Or gold project in
French Guiana, and for working
capital and general corporate purposes.
The Offered Shares to be issued under the Offering will be
offered by way of a short-form prospectus to be filed in each of
the Provinces of Canada (other
than the Province of Quebec) and
may be offered in the United
States to Qualified Institutional Buyers pursuant to
exemptions from the registration requirements under rule 144A of
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), in a manner that does not require the Offered
Shares to be registered in the United States. The Offered
Shares may be also sold in such other jurisdictions as Columbus and Beacon may agree.
The Offered Shares have not been, and will not be, registered
under the U.S. Securities Act, or any U.S. state securities laws,
and may not be offered or sold in the
United States without registration under the U.S. Securities
Act and all applicable state securities laws or compliance with the
requirements of an applicable exemption therefrom. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy securities in the
United States, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
ON BEHALF OF THE BOARD,
Robert F.
Giustra
Chairman & CEO
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").
Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and
involve risks, uncertainties and other factors that may cause
actual results to materially differ from those expressed or implied
by the forward-looking statements, including: the expected size,
timing for completion and use of proceeds for the Offering; the
ability to acquire necessary permits and other authorizations;
environmental compliance; cost increases; availability of qualified
workers and drill equipment; competition for mining properties;
risks associated with exploration projects including, without
limitation, the accuracy of interpretations; mineral reserve and
resource estimates (including the risk of assumption and
methodology errors and ability to complete the intended drilling
program); the timing and content of upcoming work programs;
dependence on third parties for services; non-performance by
contractual counterparties; title and insurance risks; world gold
market prices and general economic conditions. Forward-looking
statements are based on a number of assumptions that may prove to
be incorrect, including without limitation assumptions about: risks
inherent to the completion of the Offering, including inability to
satisfy any conditions to closing, obtaining Toronto Stock Exchange
and other regulatory approvals, that the Offering may not be
completed on the terms or within the timeline indicated, or at all,
and additional financing requirements of Columbus; that the actual use of proceeds from
the Offering may differ from the expected use of proceeds described
herein; market prices, exploitation and exploration success; that
the design of the drill plan is appropriate for the site; the
company's ability to carry out its intended business plan; general
business and economic conditions; the timing and receipt of
required approvals; continued availability of capital and
financing; power prices; ability to procure equipment and supplies
including, without limitation, drill rigs; and ongoing relations
with employees, partners, optionees and joint venturers. Readers
are cautioned not to place undue reliance on the forward-looking
statements contained herein. The foregoing list is not exhaustive,
and Columbus undertakes no
obligation to update any of the foregoing except as required by
law.
SOURCE Columbus Gold Corp.