Columbus Establishes Anticipated Dates for ALLEGIANT Spin-Out
November 07 2017 - 7:00AM
Columbus Gold Corp. (TSX:CGT) (OTCQX:CBGDF) is
pleased to announce that the Information Circular prepared in
connection with the SGM to be held on
November 27,
2017 to approve the Allegiant Gold Ltd. (“ALLEGIANT”)
spin-out has been mailed to Columbus Gold shareholders and filed on
SEDAR together with the financial statements and MD&A of
ALLEGIANT for the year ended September 30, 2016 and the nine months
ended June 30, 2017. Shareholders of record on the Share
Distribution Record Date will be entitled to receive 1 (one) share
of ALLEGIANT for every 5 (five) shares they own of Columbus
Gold. This date is anticipated to be
December 11,
2017 but may be later depending upon timing of regulatory
approvals.
Only shareholders of record as at the
Share Distribution Record Date will be entitled to receive shares
of ALLEGIANT in the spin-out. Shareholders who sell their
shares prior to the Share Distribution Record Date will not be
entitled to receive shares of ALLEGIANT.
ALLEGIANT owns 14 drill-ready projects in the
United States, 11 of which are located in mining-friendly Nevada,
and is led by Andy Wallace, who has discovered a number of
multi-million-ounce gold mines in Nevada. ALLEGIANT has
announced plans to drill 10 projects within 12 months of listing,
including its flagship projects, Eastside and Bolo. At
Eastside, the Original Zone hosts a pit-constrained Inferred
resource of 721,000 gold equivalent ounces (35,780,000 tonnes
grading 0.63g/t gold equivalent per tonne)1 and remains open to
depth, and to the south and west, and possibly to the north and
east. A 14-hole reverse circulation drill program, totaling
2,806 metres, was recently completed at the Bolo gold
project. All of the drill samples have been stored in sealed
and wire strapped containers and will be shipped to the lab when
the spin-out of ALLEGIANT has been completed.
Qualified PersonAndy Wallace is
a Certified Professional Geologist (CPG) with the American
Institute of Professional Geologists and is the Qualified Person
under NI 43-101, Standards of Disclosure for Mineral Projects, who
has reviewed and approved the technical content of this press
release and the Information Circular.
About Columbus GoldColumbus
Gold is a leading gold exploration and development company
operating in French Guiana, France, and in Nevada. Columbus Gold
holds a major interest in the world-class Montagne d’Or gold
deposit in French Guiana. A Feasibility Study for Montagne d’Or was
filed in May 2017 and Columbus Gold is presently evaluating a
number of mine construction financing options. In Nevada, Columbus
Gold is advancing its flagship projects, Eastside and Bolo.
Columbus Gold recently announced plans to spin-out its subsidiary
Allegiant Gold Ltd., with the intent of listing ALLEGIANT on the
TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Robert F. GiustraChairman & CEO
For more information contact:
Investor
Relations604-634-09701-888-818-1364info@columbusgold.com
This release contains forwarding 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 Columbus Gold’s
plans to spin-out its subsidiary Allegiant Gold Ltd. which is
intended to be listed on the TSX Venture Exchange. Forward-looking
statements 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 that the
spin-out may not be completed as planned or at all due to failure
to obtain shareholder or regulatory approval ,the inability to
raise sufficient capital to adequately fund Allegiant or a decision
of the board of Columbus Gold not to proceed, which decision can be
made at any time prior to closing. Forward-looking statements are
based on the opinions and estimates of management at the date the
statements are made and a number of assumptions that may prove to
be incorrect, including, without limitation, assumptions about
general business and economic conditions, the timing and receipt of
required approval and continued availability of capital and
financing. Readers are cautioned not to place undue reliance on the
forward-looking statements contained herein. The foregoing list is
not exhaustive and Columbus Gold undertakes no obligation to update
any of the foregoing except as required by law.
1: See the NI 43-101 technical report for the
Eastside project filed on SEDAR with an effective date of July 25,
2017.