Attached files
| file | filename |
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| 8-K - MAINBODY - FIRST COLOMBIA GOLD CORP. | mainbody.htm |
| EX-10.4 - EX104 - FIRST COLOMBIA GOLD CORP. | ex104.htm |
Constitution
Mining Amends Terms Required to
Purchase
100% Interest in Gold Sands Project
Lima, Peru – April 13, 2010 -
Constitution Mining Corp. (CMIN.OB) amended the terms of its
Agreement with Temasek Investments Inc. for the purposes of revising the terms
required for it to acquire ownership of 100% of the original mineral rights
relating to the 382 square kilometres (147.5 square miles) –
as previously described in our news release of October 1, 2008.
Constitution
had the option to pay, prior to March 31, 2010, US$8 million and issue 4 million
restricted common shares to bring its ownership of these mineral rights to 100%
ownership from the current 50% ownership. The anticipated increase in ownership
will enable Constitution to take full advantage of certain developments that it
believes are promising.
The
parties have agreed to modify the payment terms required in order for
Constitution to acquire 100% of the mineral rights as follows:
In return
for a 100% interest in the property’s mineral rights, CMIN agrees within 5
business days of the amendment to pay the seller US$1 million, issue 4 million
restricted common shares and issue a US$ 7 million, 3 year convertible note with
12% interest payable annually. Principal and/or interest can be taken by the
seller by way of cash or units valued at US$0.80 per unit, which consist of one
(1) share of Constitution’s common stock and one (1) warrant to purchase one (1)
share of the Constitution’s common stock at an exercise price of $1.10 per
share.
Constitution
Mining Chairman, Dr. Michael Stocker said, “Increasing our ownership in the
property’s mineral rights to 100% will make our ongoing exploration plans a good
deal more powerful and efficient. Not only that, but it allows us to take full
advantage of our promising efforts to date. Based on drill results recently
announced, we believe that the Gold Sands district may offer the potential for
large-scale, low-cost production of gold by employing modern dredging and
processing methods that do not use cyanide, mercury, or other disruptive
chemical processes.”
About
Constitution Mining Corp.
The
Company's goal is to locate large-scale, commercially viable gold deposits and
continuously increase the amount of gold underlying outstanding shares. The
Company is interested primarily in geographical areas that are home to several
significant proven gold deposits, including highly prospective districts likely
to hold further large deposits.
Peru
The first
and most active project is in the Gold Sands region of Peru – laid down by eons
of alluvial erosion. For millions of years, the waters of the Santiago and the
Maranon rivers have been carving their way through the gold-rich mountain
canyons of the Andes, carrying off vast amounts of gold and depositing it in
loose gravels and sands - Gold Sands - in the area the Company now
controls.
Results
from test holes drilled during CMIN's 26-hole Phase I exploratory drill program
indicates a potential presence of significant alluvial gold. The Company is now
engaged in implementing a Phase II drill program that will focus on grid
drilling 2.5 square kilometre regions with an aim to develop gold resource
estimates and to gather further data to determine the feasibility of large-scale
mining of this vast resource. While the results received from the Phase I drill
program were favourable, the Company cautions that these results do not yet
indicate the presence of a commercially viable mineral deposit.
The full
implementation of these programs will require the company to secure additional
financing.
Nevada
On April
1st , 2010 CMIN executed a definitive and binding Asset Purchase Agreement with
Seabridge Gold Inc. to acquire 30 Nevada-based gold projects comprising of 2,141
claims, primarily located in the heart of Nevada's prolific Walker Lane gold
belt.
The
closing of the Agreement, which is anticipated to occur on May 20, 2010, is
subject to certain conditions, including, but not limited to: (1) Seabridge
obtaining certain authorizations, approvals and consents necessary to transfer
the assets to the Company, (2) the accuracy of the parties' representations and
warranties, and (3) material performance of all of the agreements and
obligations of the parties. The Agreement contains certain termination rights,
including the right of either party to terminate the Agreement if the closing
has not occurred by June 20, 2010 (as long as the terminating party has
performed its obligations under the Agreement) and to terminate upon a material
misrepresentation or breach by the other party. The Agreement may also be
terminated upon mutual written consent of the parties.
Further
information about Constitution Mining Corp may be found at: www.ConstitutionMining.com.
On
behalf of the Board:
Dr.
Michael Stocker - CEO
Constitution
Mining Corp. (CMIN.OB)
Investor
Inquiries:
Toll
Free: 888-475-0070
Direct
Dial: 646-755-3352
Email:
Info@ConstitutionMining.com
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Disclaimer
This
release contains forward-looking statements that are based on the beliefs of
Constitution Mining Corp. management and reflect Constitution Mining Corp.
current expectations as contemplated under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as
amended. When used in this release, the words "estimate, "project," "believe,"
"anticipate," "intend," "expect," "plan," "predict," "may," "should," "will,"
"can," the negative of these words, or such other variations thereon, or
comparable terminology, are all intended to identify forward-looking statements.
Such statements reflect the current views of Constitution Mining Corp. with
respect to future events based on currently available information and are
subject to numerous assumptions, risks and uncertainties, including, but not
limited to, risks and uncertainties pertaining to development of mining
properties, changes in economic conditions and other risks, uncertainties and
factors, which may cause the actual results, performance, or achievement
expressed or implied by such forward looking statements to differ materially
from the forward looking statements. The information contained in this press
release is historical in nature, has not been updated, and is current only to
the date indicated in this press release. This information may no longer be
accurate and therefore you should not rely on the information contained in this
press release. To the extent permitted by law, Constitution Mining Corp. and its
employees, agents and consultants exclude all liability for any loss or damage
arising from the use of, or reliance on, any such information, whether or not
caused by any negligent act or omission.
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