Vancouver, British Columbia, Canada, November 30th, 2011. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold") is pleased to announce that it has sold its interest in the Summit gold project in Nevada ("Summit") to Agnico-Eagle (USA) Limited ("Agnico-Eagle") for US$8.5 million.
Robert Giustra, CEO, commented: "This transaction provides considerable cash to Columbus Gold. It represents a significant step forward in our ability to finance advancement of the Paul Isnard gold project in French Guiana, and does so without diluting the ownership of our shareholders."
Agnico-Eagle has been earning an initial 51% interest in Summit under an option agreement dated June 1, 2007 by undertaking exploration activities, and up to a 75% interest by, among other things, completing a bankable feasibility study. The option agreement between Agnico-Eagle and Columbus Gold has now been terminated and replaced with a definitive purchase and sale agreement providing for a 100% interest (subject to a 2% NSR royalty to Cordilleran Exploration Company) in the Summit Project to Agnico-Eagle for consideration of $8.5 million.
The completion of the Summit purchase and sale is subject to standard closing conditions, including the approval of the TSX Venture Exchange.
About Columbus Gold
Columbus Gold is a gold exploration and development company operating in French Guiana and Nevada. In French Guiana, Columbus Gold recently acquired an option to earn a 100% interest in the Paul Isnard gold project, which has a 43-101 compliant 1.9 million ounce inferred gold resource and substantial expansion potential. In Nevada, Columbus is a prolific project generator focused on advancing projects either through joint-venture with industry partners or on its own where exploration risk is minimized and potential is particularly promising. Columbus Gold's president, Andy Wallace has a long and successful history of gold discovery and mine development. The company currently has 13 of its 26 strategically located gold projects in Nevada joint-ventured to major and junior mining companies, including Agnico-Eagle Mines Limited.
ON BEHALF OF THE BOARD,
Robert Giustra
Chairman & CEO
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:
Investor Relations
604 634-0970 or
1 888 818-1364
info@columbusgoldcorp.com