Colibri arranges equity, debenture unit financings

Executive Summary

• Colibri Resource Corp. announced two non‑brokered private placements totaling up to $1.625 million in gross proceeds to fund exploration at its flagship Mexican gold projects (Pilar and EP) and general working capital.
• The equity placement offers up to 8,666,666 units at $0.15 per unit, each comprising one common share plus a 25‑cent warrant (24‑month term). Expected gross proceeds: ≈ $1.3 M.
• The convertible debenture placement offers up to 250 units for $250,000 gross proceeds; each unit contains a $1,000 10 % unsecured convertible debenture and 5,300 warrants (25‑cent exercise price, 24‑month term).

Key Details

• Equity Private Placement
• Maximum units: 8,666,666
• Price per unit: $0.15
• Gross proceeds target: ≈ $1.3 M
• Unit composition: 1 common share + 1 warrant (right to purchase one additional common share at $0.25 for 24 months)

• Approximately $300,000 of the gross proceeds are expected from former debentureholders converting existing obligations – not new cash.

• Convertible Debenture Private Placement

• Maximum units: 250
• Gross proceeds target: $250,000 (U.S.)
• Each unit includes:
  • One $1,000 (U.S.) principal amount 10 % unsecured convertible debenture
  • 5,300 warrants (exercise price $0.25 per share, 24‑month term)
• Interest: 10 % per annum, payable quarterly in cash; no conversion of interest into shares.
• Maturity: 2 years from issuance.

• Conversion price: $0.25 per common share (fixed FX rate $1.30 CAD = $1 USD).

• Use of Proceeds

• Finance exploration at the Pilar and EP gold projects in Mexico.

• Provide general working capital for corporate operations.

• Regulatory & Transaction Terms

• Offerings subject to TSX Venture Exchange acceptance.
• Common shares issued will have a statutory hold period of four months + one day post‑closing.
• Potential finder’s fees may be paid per exchange guidelines.

• Conducted primarily under the accredited investor exemption of NI 45‑106; other exemptions may apply.

• Related Party Participation

• Insiders may subscribe; transactions expected to fall below the 25 % market‑cap threshold, thus exempt from formal valuation and minority‑shareholder approval under MI 61‑101.

Notable Quotes

“This financing provides us with the resources to advance key exploration initiatives at Pilar and EP while also strengthening our balance sheet. We view this as a significant step forward that enables us to deliver on important near‑term objectives and continue positioning Colibri for growth,” – Ian McGavney, President & CEO, Colibri Resource Corp.