Colibri Announces $1.625M Non-Brokered Private Placements of Equity Units and Convertible Debenture Units to Advance Mexican Gold Projects
Executive Summary
- Colibri Resource Corp. announced two non‑brokered private placements: an equity offering of up to 8,666,666 units at $0.15 per unit (gross proceeds up to $1.3 M) and a convertible debenture offering of up to 250 debenture units for gross proceeds up to US$250,000.
- Approximately $300,000 of the equity proceeds will come from former debenture holders whose loans matured in August 2025; this amount does not represent new cash but will convert existing obligations into equity‑linked securities, strengthening the capital structure.
- Net proceeds are earmarked to fund exploration at Colibri’s flagship Mexican gold projects (Pilar and EP) and for general working capital.
Key Details
- Equity Offering
- Up to 8,666,666 units at $0.15 per unit → gross proceeds up to $1,300,000.
- Each Unit = 1 common share + 1 common‑share purchase warrant.
- Warrants: right to acquire one common share at C$0.25 for 24 months after closing.
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Approx. $300,000 of proceeds expected from former debenture holders (not new cash).
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Convertible Debenture Offering
- Up to 250 debenture units, each containing a US$1,000 principal amount 10% unsecured convertible debenture and 5,300 warrants.
- Gross proceeds up to US$250,000.
- Interest: 10% per annum, payable quarterly in cash.
- Maturity: 2 years from issuance.
- Conversion price: C$0.25 per common share (fixed FX rate C$1.30/US$1).
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Warrants attached to debentures also allow purchase of one common share at C$0.25 for 24 months post‑closing.
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Use of Proceeds
- Fund exploration on the Pilar Gold & Silver Project and the EP Gold Project in Mexico.
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Provide general working capital.
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Regulatory / Closing Conditions
- Offerings subject to acceptance by the TSX Venture Exchange.
- Common shares issuable will have a statutory hold period of four months + one day after closing.
- Potential finder’s fees may be paid per exchange guidelines.
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Conducted under the “accredited investor” exemption of NI 45‑106, with possible use of other exemptions.
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Related Party Participation
- Insiders may acquire units; such participation is considered a related‑party transaction but expected to be exempt from formal valuation and minority‑shareholder approval because the fair market value will not exceed 25% of market capitalization.
Notable Quote
“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.