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Press Release Source: Colorado Goldfields Inc.
Colorado Goldfields Announces Equipment Purchase Wednesday April 16, 7:00 am ET
LAKEWOOD, CO--(MARKET WIRE)--Apr 16, 2008 -- Colorado Goldfields Inc. (OTC BB:CGFI.OB - News) (the "Company") wishes to announce that it has purchased additional mobile mining equipment for the planned Mexico and Colorado operations. ADVERTISEMENT
In anticipation of the planned completion of the acquisition of 75% of the shares in Besmer, S.A. de C.V., the Company has purchased a 1.25 cubic yard LHD, a 6 ton capacity mine truck, and an underground mine tractor. The company plans to ship these units to the active silver mining operations of Besmer shortly after the anticipated closing of the acquisition.
The Company also purchased a 5 cubic yard Caterpillar 814 LHD for the Silverton, Colorado operations.
Todd Hennis, President of Colorado Goldfields Inc., states: "Our due diligence on the Besmer acquisition is ongoing. Should the due diligence be successfully completed, and the Besmer acquisition close, we plan to rapidly follow up these first equipment purchases with further purchases of 3 cubic yard LHDs, larger mine trucks, milling equipment for the planned expansion of Besmer's Boca Hacienda Mill, and other ancillary equipment for expanding mine and mill production in Mexico. For our planned Silverton, Colorado operations, we are currently negotiating a purchase of a package of underground production equipment. While there is no assurance that the Besmer acquisition will be completed, or the Silverton, Colorado properties being able to be placed into production, management believes that it is prudent to source this equipment when it is available at favorable prices."
Colorado Goldfields Inc. - - - - - - - - - - - - - - Todd C. Hennis, President
About Colorado Goldfields Inc. (OTC BB:CGFI.OB - News) www.cologold.com
Colorado Goldfields is a Denver-based junior exploration and mining development company exploring for significant deposits of gold and silver. Our strategy involves a results-oriented approach towards exploration research, supported by a scaled expansion of field operations on carefully selected assets. Colorado Goldfields is focused on working in historic gold camps; on projects which have multiple deposit discovery potential and by utilizing leading edge exploration tools and modern geophysics techniques. Our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern 500 to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. Recently, the Company has indicated plans to deploy a similar business model by acquiring a company which operates several silver mines in Mexico. With an experienced management team at the helm, Colorado Goldfields believes it is poised for growth in 2008.
Notice regarding forward-looking statements
This news release may contain 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, and as amended on March 3, 2008, 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.
Contact: Contact Information: Investor Relations Brad Long J & J Investor Relations, Inc. Email Contact 1-866-579-2434 http://www.cologold.com
-------------------------------------------------------------------------------- Source: Colorado Goldfields Inc.
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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Colorado Goldfields, Inc. 5411 Calderwood Crescent Richmond, BC V7C 3G2 Canada
Phone: (604) 681-0209
Primary SIC — Industry Classification 1000 - Metal Mining Business Stage Exploration Stage Company State Of Incorporation NV Jurisdiction Of Incorporation USA Year Of Incorporation 2004 Company Officers Gary Schellenberg, CEO, CFO, Sole Dir.
SEC Reporting Status SEC Reporting Company CIK 0001344394 Estimated Market Cap 47,453,364 as of Apr 15, 2008 Outstanding Shares 96,843,600 as of Dec 19, 2007 Number of Share Holders of Record 31 as of Dec 27, 2007 Current Capital Change shs increased by 2 for 1 split Ex-Date: Oct 31, 2007 Record Date: Oct 31, 2007 Pay Date: Oct 31, 2007 Company Notes Formerly=Garpa Resources, Inc. until 6-07 Security Notes Capital Change=shs increased by 7.9 for 1 split. Payable upon surrender. Ex-date=06/18/2007. 7. Stockholder’s Equity
Common shares
On June 18, 2007, the Company changed its name from “Garpa Resources, Inc.” to “Colorado Goldfields Inc.” and effected a 7.9 for 1 forward stock split of the authorized, issued and outstanding stock. As a result, the authorized share capital increased from 75,000,000 shares of common stock with a par value of $0.001 to 592,500,000 shares of common stock with a par value of $0.001. The issued and outstanding common shares increased from 5,575,000 shares to 44,042,500 shares. On October 29, 2007, the Company split its stock on a 2 for 1 basis. As a result, the Company’s authorized capital increased from 592,500,000 shares of common stock with a par value of $0.001 per share to 1,185,000,000 shares of common stock with a par value of $0.001 per share. All share amounts have been retroactively adjusted for all periods presented.
On November 20, 2007, the Company issued a total of 8,758,600 post-split common shares at a price of $0.375 per post-split common share under a private placement for gross proceeds of $3,284,475 (net proceeds of $3,007,343). Each common share was issued with one non-transferable share purchase warrant. Each warrant entitles the holder thereof to purchase an additional common share at a price of $0.50 per post-split share until the close of business on November 14, 2009.
The private placement provides for certain registration rights whereby the Company could incur penalties if a registration statement is not filed or declared effective by the Securities Exchange Commission (“SEC”) on a timely basis pursuant to the registration rights agreement. Under the agreements, the Company must file a registration statement registering for resale the shares within 60 calendar days following the closing of the private placement, which occurred on November 14, 2007. Furthermore, the Company is to use commercially reasonable efforts to cause such registration statement to become effective within 120 calendar days after the closing of the private placement (or, in the event of a full review of the registration statement by the SEC, 180 calendar days after the closing of the private placement). If the registration statement is not filed on a timely basis or is not declared effective by the SEC for any reason on a timely basis, the Company will be required to make a payment to the subscriber for each unit then held by the subscriber, and an additional 2.0% payment each 30-day period thereafter until the registration statement is filed or declared effective by the SEC, as the case may be; provided, however, that in no event shall these late registration payments, if any, exceed in the aggregate 15.0% of the total purchase price paid for all units sold in the private placement. Thus, the maximum monetary penalty that the Company could incur under the penalty provision of the registration rights agreement is $492,671. Under the registration rights agreements, the requirement to keep a registration statement current and effective is suspended upon the earlier of (i) the first anniversary of the closing date, (ii) the date that each investor is able to sell the shares without limitation under SEC Rule 144, or (iii) at such time that shares purchased by the investors have been sold.
The Company timely filed a registration statement to register the shares sold in the private placement, and such registration statement was chosen for full review by the SEC. Additionally, due to recent changes to SEC Rule 144, the investors will be able to sell all shares they purchased in the private placement upon the six month anniversary of the closing date. Thus, the Company has not recorded a liability in connection with the penalty provisions of the registration rights agreements because it believes that it is not probable that an event can occur which will trigger a penalty payment under the agreements.
Stock options
In February 2008, the Company approved the 2008 Stock Incentive Plan (“2008 Plan”) which provides incentive stock and non-statutory options to be granted to select employees, directors and consultants of the Company. The 2008 Plan provides that awards may be granted for up to 9,600,000 shares of the Company’s common shares. Terms of exercise, vesting and expirations of options granted under the 2008 Plan may be established at the discretion of the Board of Directors, but no option may be exercisable for more than ten years. The exercise price of an incentive stock option may not be less than 100% of the fair market value of a share on a date of grant. For a non-statutory stock option, it may not be less than 85%.
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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