SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

March 04, 2009 08:00 ET

Colorado Goldfields Inc. Declares: to "B" or Not to "B"! For Class A Shareholders That! Is the Question

LAKEWOOD, CO--(Marketwire - March 4, 2009) - Today, Colorado Goldfields Inc. (OTCBB: CGFIA) Management learned that certain brokers registered with the Depository Trust Clearing Corporation (DTCC) and whose individual clients own Colorado Goldfields Inc. Class A Common Stock shares have not made the required submission of their clients' beneficial ownership to the Company's Transfer Agent. That means those shareholders are at risk for potentially never receiving their allotment of the Company's Class B Common Stock shares and Class B Warrants ("Class B Securities"). What is the value of receiving the Class B Securities? "Class B Securities allow the shareholder more voting power -- 2 votes per share. Thus, together with Class A Common Stock shares, the shareholder who owns Class B Common Stock and Class B Warrants (upon exercise), has increased their voting power with regard to any number of corporate actions by a 5 multiple," confirmed C. Stephen Guyer, CFO of Colorado Goldfields Inc.

"In the event of a merger opportunity, which our Board of Directors has resolved the Company should pursue in this current rising gold price environment, shareholders who own both Class A Common Stock shares and Class B Common stock shares will have the most influence over how the Company moves forward. Those shareholders holding both Class A and Class B Securities will necessarily be in a position to vote on the proposed structure and terms of a merger, and frankly will enjoy a higher benefit in a merger that places a premium on the combined share ownership," continued Mr. Guyer.

"It has also come to the attention of Management that there are a number of DTC Participant brokers who hold positions in our stock who act in a nominee or quasi nominee role on behalf of undisclosed individual beneficial owners of our stock. We understand that in the so-called nominee held group, potentially millions of Company Class A common shares may have been used by multiple brokers, multiple times, in share loans to facilitate short selling in our stock, the result being downward pressure on our stock trading price. Now as the 'clarion call' has rung for all beneficial owners to assemble for their share of Class B Securities, these DTC Participant brokers are potentially unable to perform, that is 'to bring it,' leaving possibly hundreds of shareholders bereft of their fair share of 'the rock' -- that is, Class B Securities," stated Lee R. Rice, CEO Colorado Goldfields Inc.

C. Stephen Guyer CFO, CGFIA, concludes, "We want all our shareholders treated respectfully and equitably. If your shares are held with a broker, protect your interests, call your broker and instruct your broker to do all that is required for you to immediately receive your Class B Securities, which is the Company's earnest desire."

About Colorado Goldfields Inc.

Colorado Goldfields Inc. (OTCBB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern, up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/s/pdfs/CGFIFactSheet.pdf. An audio presentation of the CGFIA 2009 business plan is available on the web at http://www.cologold.com/s/multimedia/audiopresentation.wmv. The most recent live investor conference (of September 4, 2008) is available at http://www.cologold.com/s/audio/CGFI_Live_Investor_CC.wma.

Notice regarding forward-looking statements

This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

  • Contact:
    Brad Long
    Director of Investor Relations
    Colorado Goldfields Inc.
    866-579-2434 or 303-984-0524
    10920 W. Alameda Avenue, Suite 207
    Lakewood, CO 80226
    http://www.cologold.com