Mr. Ronald Goguen reports
COLIBRI ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF PREVIOUSLY ANNOUNCED NON-BROKERED PRIVATE PLACEMENT
Further to its news release of Aug. 4, 2023, Colibri Resource Corp., effective Aug. 31, 2023, has closed a second and final tranche of its non-brokered private placement originally announced on June 30, 2023. Under this second tranche, the Company has issued 200 Units (the "Units") for gross proceeds of US$200,000. Combined with a first tranche of 487 Units which closed on August 1, 2023 (see the Company's news release dated August 4, 2023), the Company has issued an aggregate of 687 Units for gross proceeds of US$687,000.
Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the "Debentures") issued by the Company with a maturity date ("Maturity Date") of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company (each, a "Warrant").
Each Debenture will bear interest at 10% per annum, calculated in US dollars, from the date of issuance, payable in arrears quarterly and upon maturity or redemption. The Debentures will mature on the date that is two (2) years from the date of issuance (the "Maturity Date"). All interest accrued on the Convertible Debentures will be payable in cash only.
The principal amount of the Debentures are convertible into Shares, at the holder's option, at a price of (i) C$0.08 per Common Share upon issuance and 12 months thereafter; and (ii) at C$0.10 per Common Share between 12 months and one day to the Maturity Date (the "Conversion Price"), at any time prior to the Maturity Date. The Debentures carry a fixed foreign exchange rate of C$1.30 for each US$1 of principal for conversion purposes only.
Each Warrant is exercisable to acquire one Common Share at an exercise price of $0.12 per share for a period of 24 months from the date of issuance.
In connection with the Offering, the Company paid finder's fees to certain registered dealers which was comprised of cash payments totalling US$2,040 and the issuance of 11,049 finders' options exercisable at a price of $0.12 per Common Share and having a term of 24 months after issuance.
The Offering is subject to final acceptance of the Exchange. The Units issued in tranche 1 and the securities underlying them will be subject to a hold period which expires on December 2, 2023 while the Units and the securities underlying them issued in tranche 2 will be subject to a hold period which expires on January 1, 2024.
The Company intends to use the proceeds of the Offering for general working capital purposes and exploration expenses including drilling on the Evelyn/Plomo ("EP" Project) and Diamante/El Mezquite/Jackie projects.
Insider Participation in the Offering
As certain officers, directors and 10%+ shareholders of the Company participated in the second tranche of the Offering, the Offering is considered a "related party" transaction subject to and in accordance with Multilateral Instrument 61-101 ("MI 61-101") and policy 5.9 of the Exchange. The Company relied on the exemptions from the valuation and minority shareholder approval requirements contained in Sections 5.5(a) and (b) and 5.7(1)(a) and (b) of MI 61-101. Neither the Company nor, to the knowledge of the Company after reasonable inquiry, a related party, has had knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
About Colibri Resource Corporation
Colibri is a Canadian-based mineral exploration company listed on the TSX-V (CBI) and is focused on acquiring and exploring prospective gold & silver properties in Mexico. The Company holds six high potential precious metal projects, all of which have planned exploration programs for calendar 2023.
We seek Safe Harbor.
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