Message #1 From:
NewsBot Date: February 10, 2008 08:27:17 PM
Colombia Goldfields Ltd. Submits Successful Bid for Mineros Nacionales S.A.
TORONTO, Jan. 30 /CNW/ - Colombia Goldfields Ltd. (the "Company") (TSX:
GOL/OTCBB: CGDF) is pleased to announce that through a competitive bid
process, it has been selected as the winning bidder for Mineros Nacionales
S.A. As a result, Colombia Goldfields Ltd. has agreed to acquire 100% of the
issued and outstanding shares of Mineros Nacionales S.A. for cash
consideration of US$35 million. The transaction is required to be completed
within 180 days. The Company has provided a deposit guarantee in the amount
US 2.5 million which would be payable to the vendor in the event the
transaction is not completed for any reason. The Company plans to undertake
financing in order to complete the transaction.
Mineros Nacionales S.A. owns the Zona Baja on Marmato Mountain, which is
the property directly below the Zona Alta, where Colombia Goldfields' primary
project exists. The Zona Baja currently has an underground operation with a
working mill which, based on information provided to the Company, currently
produces approximately 25,000 ounces of gold per annum.
"We are extremely pleased that we have been chosen as the winning bidder
for Mineros Nacionales," said J. Randall Martin, Chief Executive Officer and
Vice Chairman of Colombia Goldfields Limited. "The ability to combine the Zona
Alta and Zona Baja properties provides us with one of the final and most vital
pieces toward achieving our goal of consolidating the Marmato Gold District
into a world-class asset."
Colombia Goldfields Ltd., through its subsidiaries Compania Minera de
Caldas S.A. and Gavilan Minerals S.A., is developing what we believe is a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
district.
Colombia Goldfields is traded in the US under the symbol CGDF, on the
Toronto Stock Exchange under the symbol GOL, and in Germany under the symbol
C2B. The Company's full September 30, 2007, unaudited consolidated financial
statements and management's discussion and analysis are available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.
