Well Well CMJ - What do we have going on here :)
Colombian Mines to buy Leadville project in Colorado
2016-07-14 11:45 ET - News Release
Mr. Robert Carrington reports
COLOMBIAN MINES CORPORATION TO ACQUIRE ROCKY MOUNTAIN MINING
Colombian Mines Corp. has entered into a binding letter of intent to acquire privately held Rocky Mountain Mining (RMM) of Aurora, Colo. In an all-stock deal, the company will obtain all of the issued and outstanding shares of RMM with an initial payment of 200,000 common shares. CMJ will also grant RMM shareholders warrants to purchase up to 1.7 million additional shares at escalating prices over a five-year period. With the RMM acquisition, Colombian Mines obtains a group of patented mining claims in the Leadville mining district of Colorado, together with an extensive database on those properties.
Agreement
CMJ will issue 200,000 common shares and an additional 1.7 million share purchase warrants to the current shareholders of RMM. The warrants will allow the holder to purchase one full share of CMJ per warrant, and may be exercised in whole or in part at any time within five years of granting. During an initial term up to 24 months after the grant, the warrants may be exercised at a price of 15 cents per share. During the period of 24 to 48 months after grant, warrants may be exercised at a price of 30 cents per share, or during a final period of 48 to 60 months from the date of grant at a price of 45 cents per share.
Leadville mining district
The Leadville district is one of the premier historical and modern mining districts in the United States. Since 1860, the district has produced over 3.25 million ounces of gold and 256 million ounces of silver, although it is better known for its lead-zinc production. By 1915, a new use for molybdenum as a steel hardener and its critical need in World War I, initiated development of what became the largest underground mine in the world with peak production reaching 75 per cent of the world supply.
Property
The property is located in an area of the district known for its high-gold values, including the presence of coarse visible gold. According to S.F. Emmons and his seminal 1886 USGS report on the district, the two most productive host rock horizons are present and mineralized in the property area. Early exploration on the property resulted in the discovery iron sulphide orebodies. The lower portions of the main iron ore zone as reported by Emmons was "impregnated with very-coarse gold" and one 400-to-500-ton quartzite orebody averaged 1.5 ounces per ton gold and four ounces per ton silver.
Company focus
Further information on the company's newly acquired Leadville property position is currently being consolidated. The RMM acquisition commences the company's program of acquiring gold- and silver-focused high-grade assets in favourable jurisdictions, while continuing to advance its properties in Colombia. The RMM acquisition is highly accretive to CMJ's shareholders, minimizes dilution and builds shareholder value. The company is currently reviewing other more advanced acquisition opportunities.