Message #2 From:
NewsBot Date: February 10, 2008 08:21:23 PM
Colorado Goldfields Inc. Signs Royalty Option Agreement
Colorado Goldfields Inc. (OTCBB:CGFI Stock message board forum), a Denver-based, junior
exploration and mine development company exploring for gold and other
deposits in Colorado, today announced the signing of an option agreement
on certain royalties and net profit interests on the Gold King and
Mayflower Mines in San Juan County, Colorado.
The option agreement was acquired for a cash payment of $10,000 and
allows Colorado Goldfields to acquire a 3.0 percent net smelter royalty
and a 2.5 percent net profit interest on the Gold King Mine, and a 2.0
percent net smelter royalty and a 2.5 percent net profit interest on the
Mayflower Mine from Recreation Properties, Ltd. for a one time payment
of $250,000. The option expires on November 21, 2008.
Colorado Goldfields Inc. owns the Pride of the West Mill at
Howardsville, Colorado, an inactive mining mill, and has an option to
earn up to an 80% interest in the Gold King, Mayflower and Mogul Mine
properties in San Juan County, Colorado.
Todd Hennis, President and CEO of Colorado Goldfields, said, “This
option to acquire outstanding royalties on the southwestern Colorado
mining properties represents an important milestone in our efforts in
San Juan County, and provides us with an opportunity to extinguish these
royalties if our exploration activities and feasibility studies
determine that commercially viable mineral reserves exist on the
properties.” The Company, working closely with
business and community leaders, seeks to re-establish mining operations
in the prolific former mining area surrounding Silverton, Colorado,
where the gold mining history dates back 135 years.
The Company’s long-term strategy involves
consolidating the major mining properties of the Silverton area,
combined with the application of modern exploration techniques and
scaled expansion of field operations on carefully selected assets.
Cautionary Note
Except for historical information contained herein, this news release
contains forward-looking statements or information within the meaning of
the United States Private Securities Litigation Reform Act of 1995.Forward-
looking statements or information include statements regarding the
expectations and beliefs of management. Forward-looking statements or
information include, but are not limited to, statements or information
with respect to known or unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements
or information. Forward-looking statements or information are subject to
a variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking statements
or information, including, without limitation, risks and uncertainties
relating to obtaining financing to meet the Company’s
exploration program and operating costs during its exploratory stage,
the interpretation of exploration results and the estimation of mineral
resources and reserves, the geology, grade and continuity of mineral
deposits, the possibility that future exploration, development or mining
results will not be consistent with the Company’s
expectations, accidents, equipment breakdowns, title matters, or other
unanticipated difficulties with or interruptions in production and
operations, the potential for delays in exploration or development
activities or the completion of feasibility studies, the inherent
uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations, currency
fluctuations,regulatory restrictions, including the inability to
obtain mining permits and environmental regulatory restrictions and
liability, the speculative nature of mineral exploration, dilution,
competition, loss of key employees, and other risks and uncertainties,
including those described under “Risk Factors”
in the Company’s Annual Report on Form 10-KSB
filed on December 27, 2007, which is on file with the Securities and
Exchange Commission, as well as the Company’s
other SEC filings.Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
forward-looking statements. Accordingly, readers are advised not to
place undue reliance on forward-looking statements or information.The
Company does not undertake any obligation to release publicly revisions
to any “forward-looking statement,”
to reflect event or circumstances after the date of this news release,
or to reflect the occurrence of unanticipated events, except as is
required under applicable securities laws.
Colorado Goldfields Inc. Todd C. Hennis, CEO, 303-984-5324
