Columbia Metals Corporation Limited
TSX VENTURE : COL

Columbia Metals Corporation Limited

January 25, 2007 09:00 ET

Columbia Announces Receiving Final TSX-V Approval for a $2,000,000 Non-Brokered Private Placement and Appointment of New Chief Financial Officer

TORONTO, ONTARIO--(CCNMatthews - Jan. 25, 2007) - Columbia Metals Corporation Limited (TSX VENTURE:COL) (the "Company" or "Columbia Metals") announces the closing of the first $1,100,000 tranche of its previously announced $2,000,000 private placement financing. Under the terms of the financing, Columbia Metals issued a $1,100,000 unsecured convertible debenture to a fund managed by RAB Capital plc, a London based investment management company ("RAB"), and upon completion of certain documentation in connection with the registration of a security interest in Mexico, which the Company expects within the next seven days, the Company will issue a $900,000 secured convertible debenture to GC-Global Capital Corp. ("GC-Global").

A 10% interest is payable on the $1,100,000 debenture to RAB which matures 2 years from closing and a 12% interest is payable on the $900,000 debenture to GC-Global which matures 1 year from closing. The debentures are convertible into units of the Columbia Metals at $0.30 of principal outstanding per unit, each unit consisting of one common share of the Company and one half of one common share purchase warrant of the Company at an exercise price of $0.30 of the principal outstanding.

Each warrant from the $1,100,000 debenture will have a term of eighteen (18) months from the date of issuance of the units and each warrant from the $900,000 debenture will have a term of (12) months from the date of issuance of the units. Each whole warrant will entitle the holder to purchase one common share of the Company at an exercise price of $0.50 per common share.

A finder's fee in the amount of $140,000 will be paid to K2 Performance Corp. for their role in connection with the private placement financing.

Columbia Metals intends to use the proceeds of the private placement financing for general working capital and to advance the Company's Lluvia De Oro project in Mexico towards production.

Columbia Metals is also pleased to announce the appointment of Chris Carmichael as the Chief Financial Officer of the Company. Chris is a Certified General Accountant with ten years experience in financial management of publicly listed companies. He is currently the Chief Financial Officer of GC-Global Capital Corp. (GDE.A), a TSX Venture listed Canadian merchant bank and Global Development Resources, Inc. (GDV.U), a TSX Venture Exchange US merchant bank.

Shares Outstanding: 58,896,427

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Columbia Metals Corporation Limited
    Carl Di Placido
    (416) 364-6799
    (416) 364-2595 (FAX)
    Website: www.columbiametals.ca