Colombia Crest Gold Corp. (
TSX: V.CLB,
Stock Forum) said Thursday that effective immediately it has concluded its option purchase agreement for the 1,985-hectare Venecia project in Colombia with
Colombian Mines Corp. (
TSX: V.CMJ,
Stock Forum).
It said the decision was made for reasons of cash flow and maximizing exploration properties held by Colombia Crest.
As previously announced, Colombia Crest was given a notice of default of the Venecia Agreement and was provided 30 days to rectify the default. But
the company said in a press release it was not able to meet its obligation and has decided instead to prioritize its funding and exploration efforts on the Fredonia Project in Colombia and the evaluation of the Machacala, Peru.
Colombia Crest was unchanged Thursday at 2.5 cents, leaving a market cap of $2.4 million, based on 96 million shares outstanding. The 52-week range is 34 cents and 1 cent.