Colorado, Buckingham Receive $2.5 Million Financing Commitments

Colorado Resources (TSXV:CXO,OTC Pink:CLASF) and Buckingham Copper have received over $2.5 million in financing commitments regarding a private placement of the latter company.

Highlights from the press release are as follows:

• Minimum Financing Commitments Received. Buckingham has received over $2.5 million in financing commitments for the concurrent financing, satisfying one of the conditions under the terms of the non-binding letter of intent between Buckingham and Colorado to advance the proposed transaction.

• Financing Terms. Buckingham’s commitment letters for the concurrent financing include both $1 million in hard dollar subscription receipts and over $1.5 million in flow through subscription receipts:

  • Hard Dollar Subscription Receipts: Buckingham subscription receipts for minimum aggregate proceeds of $1,000,000, priced at $0.085. Upon closing of the Proposed Transaction, each unit will be exchanged for a unit of Colorado, at a deemed price of $0.085, consisting of one Colorado share and one-half of one common share purchase warrant of Colorado. Each Colorado Warrant shall be exercisable for three years into one Colorado Share at a price of $0.12 per Colorado Share subject to adjustment in certain events.

  • Flow Through Subscription Receipts: Buckingham flow-through subscription receipts for minimum aggregate proceeds of $1,500,000, priced at $0.12. Upon closing of the Proposed Transaction, each Flow-Through Unit will be exchanged for a unit of Colorado, at a deemed price of $0.12, consisting of one Colorado share issued on a flow-through basis and one-half of one common share purchase warrant of Colorado. Each Colorado FT Warrant shall be exercisable for three years into one Colorado Share at a price of $0.15 per Colorado Share subject to adjustment in certain events and an acceleration clause.

• Next Milestones. Colorado and Buckingham are continuing with due diligence, drafting of the Definitive Agreement, and the various regulatory and contractual milestones related to concluding the Proposed Transaction.

Click here to read the full press release from Colorado Resources.