VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 2, 2013) - Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE:CLB)(ECRTF)(FRANKFURT:EAT) is pleased to announce that it has entered into an agreement for the sale of its Bolivian subsidiary and the San Simon project to STEINMAR Ltda. ("Steinmar"), a Bolivian company. Steinmar has agreed to purchase the outstanding shares of Eaglecrest Exploration Bolivia S.A. for payments that total US$5 million.
"This agreement represents a major milestone for Colombia Crest as it monetizes the gold resource in Bolivia and lets us turn 100% of our attention to discovery of a gold resource in Colombia," comments Hans Rasmussen, President and CEO. "We advanced the San Simon project into an asset that we have now sold to a Bolivian company. Our business model consists of exploration and monetization of assets, so today we are thrilled to have reached this milestone."
San Simon Project
The Company has explored in Bolivia since 1996, and in recent years the Bolivian government began to nationalize certain operations in mining, oil and gas, and other industries. Due to the unfavourable political climate and investment risk, management has decided to end the Company's presence in Bolivia.
On December 10, 2010 the Company announced that SRK Canada ("SRK") had completed a National Instrument 43-101 ("NI 43-101") resource estimate on the Doña Amelia area of the San Simon Project. Drilling elsewhere in the San Simon Project was not closely-spaced enough to support a resource estimate.
|Mineral Resource Statement*, Doña Amelia area|
|*Mineral resources are not mineral reserves and do not have demonstrated economic viability. All numbers have been rounded to reflect the relative accuracy of the estimates.|
The agreement with Steinmar for the sale of Eaglecrest Exploration Bolivia S.A. calls for US$5 million in cash payments to Colombia Crest, as follows:
|At signing, US$100,000.|
|By the 1st Anniversary, an additional US$100,000.|
|By the 2nd Anniversary, an additional US$800,000.|
|By the 3rd Anniversary, an additional US$800,000.|
|By the 4th Anniversary, an additional US$800,000.|
|By the 5th Anniversary, an additional US$900,000.|
|By the 6th Anniversary, an additional US$300,000.|
|By the 7th Anniversary, an additional US$300,000.|
|By the 8th Anniversary, an additional US$300,000.|
|By the 9th Anniversary, an additional US$300,000.|
|By the 10th Anniversary, an additional US$300,000.|
With this sale, which is subject to acceptance by the TSX Venture Exchange, the Company will be able to devote its full resources and efforts to its Colombian projects, which management has very high optimism for advancing.
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia. The Company employs a team of seasoned geologists, many with 20+ years of experience exploring and discovering porphyry deposits around the world, including Argentina, Peru, Ecuador, Mexico, Alaska, Indonesia, and Eastern Europe.
The Company is currently carrying on exploration programs at the Fredonia and Venecia projects where it has optioned over 30,000 hectares located approximately 40 km south of the city of Medellín, in Antioquia Province. The properties are positioned within the Middle Cauca Belt, the most prolific gold belt in Colombia with more than 500 years of gold mining history and several new gold discoveries.
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Please visit the Company's website at www.ColombiaCrestGold.com.
President and CEO
Colombia Crest Gold Corp.
Manager, Corporate Communications