Colombian Mines Signs Definitive Agreement to Acquire High Grade Pamlico Gold Property In Nevada

VANCOUVER, BC–(Marketwired – September 27, 2016) – Colombian Mines Corporation (TSXV:CMJ) is pleased to announce all parties have signed the definitive agreement (the “Agreement”) whereby the Company has the exclusive right to acquire a 100% undivided interest in the high grade Pamlico gold project in Nevada. Pamlico is a historic high grade producer with recent drill intercepts to 239.15 g/T Au over 4.6 meters, and is permitted for pilot mining and processing of bulk samples via a modern “trackless” decline completed in 2013.

Colombian Mines has the exclusive option to purchase an undivided 100% interest in the property subject to a 4% Net Smelter Return (NSR) royalty. The Agreement provides for an initial “Option” to purchase the property for US$ 7 million or an “Early Exercise Option” of US$ 4 million if exercised and paid within four (4) years.
The Company has the option to “buy down” 3 percentage (3%) points of the royalty for US$ 1 million per point, or US$ 3 million total at any time during the agreement. During the option period the Company will pay US$ 250,000 per year as pre-production cash payments. The cumulative value of all payments, including Pre-Production Cash Payments, Annual Payments and Production Royalties, to Merritt apply to the final purchase price.

The Company plans an aggressive exploration and development program this fall once funding is in place.

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