Columbia Metals Corporation Limited

Columbia Metals Corporation Limited

March 11, 2005 13:02 ET

Columbia Announces Closing of Private Placement and Enters Into Fiscal Agency Agreement With Union Securities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: COLUMBIA METALS CORPORATION LIMITED

TSX VENTURE SYMBOL: COL

MARCH 11, 2005 - 13:02 ET

Columbia Announces Closing of Private Placement and
Enters Into Fiscal Agency Agreement With Union
Securities

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - Columbia Metals
Corporation Limited (TSX VENTURE:COL) announces the closing of its
previously announced private placement financing. Under the previously
announced private placement financing, the gross proceeds of $910,000,
representing 2,600,000 units at a price of $0.35 per unit have been
received. Each unit is comprised of one common share and one common
share purchase warrant of Columbia. Each common share purchase warrant
will entitle the holder to acquire one Columbia share at a price of
$0.45 per share on or before July 10, 2006. Notwithstanding the one (1)
year exercise period, a mandatory exercise of the warrants will occur
should the common shares of the Company trade at or over $0.60 for
twenty (20) consecutive trading days.

Lightfoot Ltd. has received a finder's fee in the amount of 6,000 units.
Each unit comprised of one common share and one finder's warrant. Each
finder's warrant is exercisable at $0.45 per share for a period of one
year from the date of issuance. The amount of finder's fee equals 5 per
cent of the funds raised by Lightfoot pursuant to the financing.

Union Securities Ltd. has received a finder's fee in the amount of
$15,312.50 in cash and 87,500 in finder's warrants. Each finder's
warrant is exercisable at $0.45 per share for a period of one year from
the date of issuance. The amount of finder's fee equals 5 per cent of
the funds raised by Union Securities pursuant to the financing.

Columbia intends to use the proceeds of the private placement financing
for general working capital and for development work on Columbia's
properties in Mexico.

Carl Di Placido and Chris Berlet, two directors of Columbia, have
subscribed for 380,000 units pursuant to this offering.

The insider private placement was reviewed by the independent directors
of Columbia, who determined that the terms of the private placement were
reasonable in the circumstances of Columbia. The insider private
placement are exempt from the valuation and minority approval
requirements of OSC Rule 61-501, since the fair market value of the
insider private placement is less than 25% of the market capitalization
of Columbia and as the fair market value of the insider private
placement is for an amount less than $2,500,000.

Columbia is also pleased to announce that it has entered into a fiscal
agency agreement with Union Securities Ltd. Under the terms of the
agreement Union Securities will provide ongoing fiscal agency services,
equity financing, and other like services to Columbia.

Shares Outstanding: 37,112,077

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Columbia Metals Corporation Limited
    Chris Berlet
    (416) 364-6799
    (416) 364-2595 (FAX)
    www.columbiametals.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.