Nov 20 2014
The Company and the vendors have amended the terms of the Aspen Option to acquire 16 mineral tenures which collectively form part of the Company's Hit Property wherein for consideration of the remaining aggregate cash payments of $75,000 and aggregate share issuances of 350,000 common shares, the Company has transferred 4 mineral tenures (out of 43) that formed a small portion of its Kinaskan Property extinguishing any further cash payments and share issuance obligations due under the Aspen Option.
The Company has subsequently exercised the Aspen Option and has acquired its 100% interest, subject to a 2.5% NSR payable to the vendors of which 2% may be purchased for $4,000,000. The Transferred Kinaskan Claims remain subject to the same NSR payable to the Company.
Upon exercise of the Aspen Option and consolidation of land in the Hit area, Colorado is the now the largest land holder in the area which saw three diamond drill programs (Copper Mountain- Axe Property, Sumac (Sumitomo)-Dillard Property, Kaizen Discovery- Aspen Grove Project) and a bulk sample program (Gold Mountain- Elk Property) completed this summer by others contiguous to Colorado's Hit Property. Colorado has recently completed surface sampling and prospecting along trend of these prospective areas. See figure one below for further details.
Figure One: http://media3.marketwire.com/docs/CXO1118.pdf
Eldorado Property
Although exploration results to date have been encouraging on the Eldorado Property, upon completing its review of this project and taking into context its other projects, notably KSP and North ROK, the Company has elected not to proceed under the terms of its Eldorado Option. The elimination of cash payments due for 2014 and future work commitment requirements of $1,500,000 due for 2016 will allow additional funds to be allocated to its KSP Option obligations.
Adam Travis, Colorado's President and C.E.O stated; "During these fiscally difficult times, Colorado's objectives are to reduce holdings costs while consolidating and advancing its core land positions. With $3.5M working capital as at September 30, 2014 as described in the Company's financials and md&a for September 30, 2014 ("Q2 Interim Report") and moderate work commitments due in 2015 under its KSP option the Company is in relatively good shape to weather the current market. Trading 4 claims at Kinaskan for the remaining obligations at Hit on the Aspen Option is one such way in which we will continue to deliver value and continue to upgrade our holdings".