Vancouver, BC, Canada; October 22, 2012 - (MetalsNews) – Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver or the "Company") is pleased to announce the satisfaction of the conditions to its option agreement (the "Agreement") with Santa Fe Gold Corporation ("Santa Fe"), under which Santa Fe may earn 100% of the Company's interest in the New Mexico Mogollon Project (the "Property"). The transactions underlying the Agreement are more fully disclosed by Columbus Silver's news release dated September 19, 2012.
The TSX Venture Exchange provided final acceptance of the Agreement on October 16, 2012. Upon receipt of such approval, the parties had three business days to satisfy the following obligations, all of which were completed on time:
- Santa Fe has paid Columbus Silver a second option payment of US$150,000 for gross proceeds received to date of US$250,000;
- Santa Fe and Columbus Silver have executed a mutual release respecting the terminated plan of arrangement described by Columbus Silver's news release dated June 1, 2012 (the "POA");
- Santa Fe has confirmed that Columbus Silver is not required to repay any of the approximately $1,060,000 advanced thereto by Santa Fe in connection with the POA; and
- Santa Fe has paid Columbus Silver the approximately CDN$25,000 outstanding from the POA termination.
To earn its 100% interest in the Property, Santa Fe must pay to Columbus Silver US$500,000 on or before December 30, 2012, and four payments of $937,500 on each of June 30, 2013, December 30, 2013, June 30, 2014, and December 30, 2014. Santa Fe must also maintain the Property in good standing. For additional details, please see the Company's news release dated September 19, 2012. A full copy of the Agreement may also be viewed under the Company's profile on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information contact:
1 888 818-1364
This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation this news release contains forward-looking statements pertaining to the Agreement, including without limitation Santa Fe's payments and other obligations required thereunder to maintain the Property and Agreement in good standing, and future obligations discussed therein. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation whether Santa Fe has the desire and ability to make payments to Columbus Silver and in connection with maintaining the Property and the Agreement in good standing; whether Santa Fe will maintain the option in good standing and will not terminate the Agreement in connection with dropping the option; cost increases; unforeseen circumstances; risks associated with the exploration projects or title thereto held by Columbus Silver; mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that Santa Fe will have sufficient funds and desire to continue earning into the Property and maintaining it in good standing, and will do so; that required service providers will be available; general business and economic conditions; availability of financing; and ongoing relations with employees, partners and joint venturers. Although the foregoing forward-looking statements are considered reasonable at the time of preparation, the aforementioned assumptions and factors may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The aforementioned factors and assumptions are not exhaustive. Columbus Silver's actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this document is expressly qualified by this cautionary statement. The foregoing list is not exhaustive and Columbus Silver undertakes no obligation to update any of the foregoing except as required by law.