Colibri Resource Corporation Closes Private Placement
Suite 700-105 Englehart Street Dieppe, New Brunswick E1A 8K2 Phone: 506-383-4274 Email: [email protected]
NEWS RELEASE
COLIBRI RESOURCE CORPORATION CLOSES PRIVATE PLACEMENT
DIEPPE, N.B., May 4, 2020 (CBI: TSX-V) – Colibri Resource Corporation (“Colibri” or the “Company”) is pleased to announce that further to its news release of April 20, 2020, the Company has received final approval from TSXV and closed a non-brokered private placement effective May 1, 2020 (the “Closing Date”). The Company has raised $200,000 through the issuance of 8% Unsecured Convertible Redeemable Debentures (the “Debentures”) maturing on April 30, 2022 (the “Maturity Date”).
The Debentures bear interest at a rate of 8% per annum, calculated in Canadian dollars, payable in arrears quarterly and upon maturity or redemption. The Debentures are convertible into common shares ("Common Shares") of the Company, at the holder's option, at a price of (i) $0.05 per Common Share during the first year of the Debentures; and (ii) at $0.10 per Common Share in the second year of the Debentures (the "Conversion Price"), subject to adjustment in certain events, at any time prior to the Maturity Date. Please note that the Company’s April 20, 2020 news release incorrectly disclosed a second year Conversion Price of $0.075. Also, any accrued interest will be paid in cash only.
The Company will pay a finder’s fee of $7,500 to an arm’s length party. Proceeds from this private placement will be used for working capital and drilling on the Evelyn and EI Mezquite projects.
As announced in its April 20, 2020 news release, a director has subscribed for $100,000 principal amount of Debentures on the same terms as other placees, thereby making this portion of the private placement a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). This portion of the private placement will, however, be exempt from the need to obtain minority shareholder and a formal valuation as required by MI 61-101 as the Company is listed on the TSX Venture Exchange and the fair market value of the Debentures to insiders or the consideration paid by insiders of the Company does not exceed 25% of the Company's market capitalization.
The Debentures and any common shares issued on conversion are subject to resale restrictions until October 2, 2020 under applicable securities legislation.
About Colibri Resource Corporation
Colibri (https://www.colibriresource.com/) is a Canadian-based mineral exploration company listed on the TSX- Venture Exchange (TSXV:CBI) focused on acquiring and exploring properties in Mexico. The Company currently has five active exploration properties at various stages of exploration in Sonora State.
For further information, please contact:
Ronald J. Goguen, President, CEO and Director Tel: (506) 383-4274 [email protected]
Forward-Looking Statements
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain “forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward- looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.