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Colorado Resources closes final tranche of non-brokered private placement

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Colorado Resources closes final tranche of non-brokered private placement

ColoradoResources Ltd. on June 1 completed the final tranche of itsnon-brokered privateplacement with Kinross Gold Corp. for total gross proceeds of C$910,000.

The final tranche consisted of the issuance of 2.6 millionnon-flow-through units of Colorado Resources to Kinross, each unitcomprising 1 common share in the capital of Colorado Resources and 1 common sharepurchase warrant, with each warrant entitling the holder to acquire anadditional common share at an exercise price of 50 Canadian cents until June 1,2018.

With the completion of the final tranche, the finalaggregate offering consists of 9,274,931 non-flow through units of the companyat an issue price of 35 cents per unit and 3,542,334 common shares of thecompany that qualify as flow-through shares and 1,771,167 warrants at an issueprice of 42 cents per flow-through unit.

The shares issued under the final tranche, and any sharesissued on exercise of the warrants under the non-flow through units, will besubject to restrictions on transfer until Oct. 2.

The initial tranche closed May 19 and consisted of theissuance of 2,211,430 non-flow-through units and 2,282,334 flow-through unitsfor aggregate gross proceeds of about C$1.7 million. The second tranche closedMay 31 and consisted of the issuance of 4,463,500 non-flow-through units and1,260,000 flow-through units for aggregate gross proceeds of about C$2.1million.

Colorado Resources has paid aggregate finders' fees inconnection with first two tranches of C$182,279 cash and issued to finders68,880 warrants at an exercise price of 35 cents and 128,119 warrants at anexercise price of 42 cents. Each of these warrants is otherwise exercisable onthe same terms as the warrants issued to investors in the offering.

The company will use the proceeds for exploration activitieson its Canadian properties and for working capital.