SOURCE: Columbia Metals Corporation Ltd.

August 20, 2007 08:00 ET

Columbia Announces Closing of Private Placement

TORONTO--(Marketwire - August 20, 2007) - Columbia Metals Corporation Limited (TSX-V: COL) announced today the closing of its previously announced private placement financing. Under the terms of the private placement financing, gross proceeds of $1,000,000 representing 5,000,000 units at a price of $0.20 per unit have been received. Each unit is comprised of one common share and one half of one common share purchase warrant of Columbia. Each common share purchase warrant is exercisable for one Columbia share at a price of $0.30 per share until February 17, 2009.

Two of the directors of Columbia are subscribing for approximately 20% of the private placement.

Finder's fees totalling $74,500 were paid to International Financial Consulting, International Coordination Ltd., Fort House Inc. and Keith, Bayley, Rogers & Co. Ltd.

Columbia will use proceeds of the private placement financing to further progress rehabilitation work at its Lluvia de Oro gold mine, and for general working capital purposes.

Subject to regulatory approval, Columbia has agreed to settle a debt of $15,000 with HDL Capital Corporation by the issuance of 60,000 units of Columbia at a settlement price of $0.25 per unit. Each unit is comprised of one common share and one half of one common share purchase warrant of Columbia. Each common share purchase warrant is exercisable for one Columbia share at a price of $0.35 per share until February 17, 2009.

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

Shares Outstanding: 62,896,427

Contact Information

  • For further information, please contact:

    Chris Berlet
    (416) 364-6799
    www.columbiametals.ca

    Columbia Metals Corporation Limited
    402 - 121 Richmond Street West
    Toronto, ON
    M5H 2K1 Canada
    Phone: (416) 364-6799
    Fax: (416) 364-2595