ColombianMines Corp. said July 14 that it has entered into a binding letterof intent to acquire privately held Rocky Mountain Mining LLC.

With the acquisition, the company obtains a group ofpatented mining claims in the Leadville mining district of Colorado togetherwith an extensive database on the properties.

In exchange, Colombian Mines will issue 200,000 commonshares and 1,700,000 share purchase warrants to the current shareholders ofRocky Mountain.

Each warrant, which expires after five years, can beexercised for 1 common share at 15 Canadian cents per share under an initialterm of 24 months, at 30 cents per share for the next period of 24 months to 48months and at 45 cents per share during a final period of 48 months to 60months.