Colibri Announces Definitive Agreement to Sell Remaining 49% Interest in Pilar for C$3.6 Million While Retaining 1% NSR
Rhea-AI Summary
Colibri Resource (OTC:CRUCF, TSXV:CBI) signed a definitive arm's length agreement dated July 8, 2026 with Tocvan Ventures to sell its remaining 49% interest in the Pilar Gold & Silver Project in Sonora, Mexico for total cash consideration of C$3.6 million. Colibri will receive C$2.0 million at closing and C$1.6 million 12 months after closing, and will retain a 1.0% net smelter return (NSR) royalty on Pilar. Tocvan may repurchase this NSR for a one-time cash payment of C$1.0 million. Closing is subject to customary conditions, including Mexican transfer documentation and TSX Venture Exchange approval. According to Colibri, proceeds are expected to strengthen its financial position, avoid shareholder dilution, and support advancement of its wholly owned EP Gold Project and broader exploration portfolio in Sonora, while maintaining long-term exposure to Pilar through the royalty.
Positive
- C$3.6 million total cash to monetize remaining 49% Pilar interest
- Upfront liquidity of C$2.0 million at closing plus C$1.6 million in 12 months
- Retained 1.0% NSR royalty on Pilar preserves upside exposure
- NSR buyback right could yield an additional C$1.0 million in cash
- Transaction structured with no finder’s fees, preserving proceeds
- Proceeds expected to fund EP Gold Project and Sonora exploration without dilution
Negative
- Full sale of remaining 49% Pilar interest ends direct project ownership
- Final cash receipt of C$1.6 million depends on closing and 12‑month payment
- Deal completion subject to TSX Venture approval and Mexican transfer documentation
News Market Reaction – CRUCF
In the Jul 13 session, CRUCF gained 5.71%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Dieppe, New Brunswick--(Newsfile Corp. - July 9, 2026) - Colibri Resource Corporation (TSXV: CBI) ("Colibri" or the "Company") is pleased to announce that it has entered into a definitive Arm's Length purchase and sale agreement, dated July 8th, 2026 with Tocvan Ventures Corp. (CSE: TOC) ("Tocvan"), pursuant to which Tocvan has agreed to acquire Colibri's remaining
The transaction is expected to significantly strengthen Colibri's financial position while allowing shareholders to retain long-term exposure to the Pilar Project through the retained
Under the terms of the agreement, Colibri will receive total cash consideration of C
C
$2.0 million payable upon closing; andC
$1.6 million payable twelve (12) months following closing.
In addition, Colibri will retain a
Closing of the transaction remains subject to customary closing conditions, including completion of the required Mexican transfer documentation and TSX Venture Exchange approval. The parties currently anticipate closing the transaction shortly following satisfaction of the closing conditions.
No finder's fees are payable in connection with the transaction.
Ian McGavney, President, CEO and Director of Colibri, stated:
"We believe this transaction represents a compelling outcome for Colibri shareholders. The agreement unlocks significant value from our minority interest in Pilar, substantially strengthens the Company's financial position without shareholder dilution, while allowing Colibri shareholders to maintain long-term exposure to Pilar through the retained royalty interest.
Most importantly, the transaction allows Colibri to focus its financial and technical resources on advancing its wholly owned EP Gold Project and broader exploration portfolio in Sonora while maintaining long-term exposure to Pilar through the retained royalty. We believe this creates a strong foundation for the Company's next phase of growth."
About the EP Gold Project
Colibri's wholly owned EP Gold Project hosts multiple high-priority target areas across a broader district scale land package, several of which have already returned encouraging drill results supporting the Company's belief that the project has the potential host one or more significant gold zones, while numerous additional targets remain.
Recent drilling previously reported by the Company at the Plomo Claims within the EP Gold Project returned several notable near-surface gold intercepts including:
7.5 metres grading 2.92 g/t gold from 6 metres, including 1.5 metres grading 9.95 g/t gold;
30.0 metres grading 0.73 g/t gold from 3 metres, including 1.5 metres grading 7.51 g/t gold;
30.0 metres grading 0.45 g/t gold from surface, including 6.0 metres grading 1.16 g/t gold; and
19.5 metres grading 0.44 g/t gold from 3 metres, including 4.5 metres grading 1.29 g/t gold.
The Company recently reported gold mineralization intersected in 18 of 22 holes completed during its Phase 1 drill program across the San Perfecto and Banco de Oro target areas at EP, supporting the interpretation of a broad mineralized structural corridor extending across the property. For more details, please refer to the Company's news release dated March 13, 2026.
The EP Gold Project is strategically situated within the Caborca Gold Belt of Sonora, Mexico and lies within and adjacent to extensive regional concession holdings of Fresnillo plc. The EP Gold Project is located approximately 25 kilometres east of Fresnillo's La Herradura Mine, 8 kilometres from the Noche Buena Mine and approximately 17 kilometres north of Fresnillo's Tajitos gold deposit. Regional information is provided for context only and there can be no assurance that mineralization, geological characteristics or economic results observed on nearby properties are indicative of mineralization on the EP Gold Project.
The technical information contained in this news release has been reviewed and approved by Jamie Lavigne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101. The locations of Fresnillo's Caborca Belt gold assets are based on information available on Fresnillo plc's website.
ABOUT COLIBRI RESOURCE CORPORATION
Colibri Resource Corporation is a Canadian-based mineral exploration company focused on acquiring and advancing prospective gold and silver projects in Mexico. The Company's portfolio includes the wholly owned EP Gold Project located in the Caborca Gold Belt of Sonora, Mexico.
For more information about the Company, please visit: www.colibriresource.com
On behalf of the Board of Directors
Ian McGavney
President, CEO and Director
Colibri Resource Corporation
Email: ianmcgavney@colibriresource.com
Telephone: 506-383-4274
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities legislation. Forward-looking statements include, but are not limited to, statements regarding completion of the transaction, timing of closing, anticipated benefits of the transaction, future exploration plans, advancement of the Company's projects and evaluation of future opportunities. Forward-looking statements are based on assumptions, estimates, expectations and opinions considered reasonable by management at the time they were made. Actual results may differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update forward-looking statements except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304673