Vancouver, British Columbia, Canada. September 22, 2008. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold" or the "Company") announces that Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver"), formerly the wholly-owned subsidiary of the Company, completed its initial public offering and expects to commence trading on the TSX Venture Exchange on Tuesday, September 23, 2008.
The Columbus Silver IPO resulted in Columbus Silver issuing 7,209,000 units at a price of $0.25 per unit for gross proceeds of $1,802,250. Each unit consists of one common share and one non-transferable common share purchase warrant entitling the holder to acquire an additional common share of Columbus Silver at a price of $0.70 for a period of 18 months from completion of Columbus Silver's IPO.
As reported in May, 2008, Columbus Gold transferred its Silver District, Silver Dome, Clanton Hills and Keg properties (the "Silver Properties") to Columbus Silver because the management of Columbus Gold believed that the value of its silver assets was not properly understood by investors. The IPO process was chosen as the most effective way to create an effective mechanism to finance exploration activities while providing Columbus Gold and its shareholders with a valuable retained interest in any future growth in value of Columbus Silver and the Silver Properties. Accordingly, Columbus Gold now holds 4,000,000 common shares of Columbus Silver, representing approximately 35.7% of Columbus Silver's issued and outstanding common shares on a non-diluted basis. All of Columbus Gold's shares of Columbus Silver are held in escrow in accordance with applicable securities laws.
ABOUT COLUMBUS GOLD
Columbus Gold Corporation is a gold exploration and development company operating principally in Nevada. The Company has an experienced management group with a strong background in all aspects of the acquisition, exploration, development and financing of precious metal mining projects. Columbus Gold controls a 100% interest, subject to royalties, in 25 gold projects strategically located along or near Nevada's most productive gold trends. The Company also holds a significant equity interest in Columbus Silver Corporation, an exploration company with a growing portfolio of silver projects in the Western United States.
Columbus Gold's and Columbus Silver's project activities are managed on an exclusive basis by Cordilleran Exploration Company (Cordex), owned and operated by John Livermore and Andy Wallace who have a long and successful history of gold discovery and mine development in the United States. Columbus Gold maintains active generative (prospecting) and evaluation programs and, as a key element of strategy, broadens exposure, minimizes risk and maintains focus on high priority prospects while seeking industry finance through joint ventures on selected projects. The Company currently has 14 of its projects joint ventured to major and junior mining companies, including Newmont Mining, Barrick Gold and Agnico Eagle Mines.