Nov 30 2011
Columbus Gold Corporation has announced that it has sold its interest in the Summit gold project in Nevada to Agnico-Eagle (USA) Limited for US$8.5 million.
Robert Giustra, CEO, commented: "This transaction provides considerable cash to Columbus Gold. It represents a significant step forward in our ability to finance advancement of the Paul Isnard gold project in French Guiana, and does so without diluting the ownership of our shareholders."
Agnico-Eagle has been earning an initial 51% interest in Summit under an option agreement dated June 1, 2007 by undertaking exploration activities, and up to a 75% interest by, among other things, completing a bankable feasibility study. The option agreement between Agnico-Eagle and Columbus Gold has now been terminated and replaced with a definitive purchase and sale agreement providing for a 100% interest (subject to a 2% NSR royalty to Cordilleran Exploration Company) in the Summit Project to Agnico-Eagle for consideration of $8.5 million.
The completion of the Summit purchase and sale is subject to standard closing conditions, including the approval of the TSX Venture Exchange.
Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Columbus Gold's president, Andy Wallace has a long and successful history of gold discovery and mine development. The company currently has 13 of its 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.