Colibri Completes Sale of 49% Interest in Pilar for C$3.6 Million Plus 1% NSR
Rhea-AI Summary
Colibri Resource (CRUCF) has completed the sale of its 49% interest in the Pilar Gold Project in Sonora, Mexico to Tocvan Ventures for total cash consideration of C$3.6 million, plus a retained 1.0% net smelter return (NSR) royalty. Colibri received C$2.0 million at closing and is to receive an additional C$1.6 million on or before the first anniversary of closing, while Tocvan may repurchase the NSR for C$1.0 million. According to Colibri, the proceeds materially strengthen its financial position, are non‑dilutive, and will be used to bolster the balance sheet, provide working capital and advance exploration at its 100%-owned EP Gold Project, which becomes the company’s principal exploration focus. The transaction remains subject to final acceptance by the TSX Venture Exchange.
Positive
- Total cash consideration C$3.6 million for 49% Pilar interest plus 1% NSR
- C$2.0 million received at closing, with C$1.6 million due within one year
- Retained 1.0% NSR royalty on Pilar with C$1.0 million buyback option for Tocvan
- Proceeds to strengthen balance sheet and fund EP Gold Project exploration
- Non-dilutive monetization of Pilar interest; no new shares issued are mentioned
Negative
- Loss of 49% ownership in the Pilar Gold Project
- Final completion remains subject to TSX Venture Exchange acceptance
- C$1.6 million of consideration is deferred up to one year from closing
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Dieppe, New Brunswick--(Newsfile Corp. - August 27, 2026) - Colibri Resource Corporation (TSXV: CBI) ("Colibri" or the "Company") is pleased to announce the successful completion of the transaction previously announced on July 9, 2026, pursuant to which the Company has sold its
Under the terms of the transaction, Colibri received C
The transaction represents total cash consideration of C
Ian McGavney, President and Chief Executive Officer of Colibri, commented:
"The successful completion of this transaction marks an important milestone for Colibri. We believe the transaction delivers significant value to our shareholders through the non-dilutive monetization of our interest in the Pilar Gold Project while retaining long-term upside through the retained royalty.
The proceeds materially strengthen our financial position and provide the flexibility to advance our wholly-owned EP Gold Project while continuing to evaluate additional value-enhancing opportunities in Sonora."
The Company intends to use the proceeds from the transaction to strengthen its balance sheet, provide additional working capital, advance exploration at its wholly-owned EP Gold Project and evaluate additional strategic opportunities in Sonora, Mexico.
Following completion of the transaction, the Company's principal exploration focus will be its
The transaction remains subject to final acceptance of the TSX Venture Exchange.
About Colibri Resource Corporation
Colibri Resource Corporation is a Canadian mineral exploration company focused on the acquisition, exploration and development of prospective gold projects in Mexico. The Company's principal asset is the
ON BEHALF OF THE BOARD OF DIRECTORS
Ian McGavney
President & Chief Executive Officer
For further information:
Colibri Resource Corporation
Tel: (506) 383-8495
Email: ianmcgavney@colibriresource.com
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable Canadian securities legislation. Forward-looking statements are frequently identified by words such as "expects", "anticipates", "intends", "plans", "believes", "will", "may", "could", "should", "would", and similar expressions. These statements include, but are not limited to, statements regarding the Company's intended use of proceeds, advancement of the EP Gold Project, evaluation of additional strategic opportunities, and other statements that are not historical facts.
Forward-looking statements are based on assumptions believed to be reasonable at the time such statements are made; however, they involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311798