Colorado Goldfields Inc. Announces American Sierra Gold Acquisition Extended; Stockholder Base Increases to 15,000 Shareholde...
March 06 2012 - 8:30AM
Marketwired
Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA)
announces that the Company has extended their Memorandum of
Understanding ("MOU"), with American Sierra Gold Corp ("American
Sierra") to August 31, 2012.
The MOU, which provides for customary due diligence, intends to
make American Sierra a wholly owned subsidiary of Colorado
Goldfields Inc. Existing shareholders of American Sierra will
receive a ratio of restricted Colorado Goldfields Class A shares in
exchange for their American Sierra shares.
American Sierra was incorporated in Nevada on January 30, 2007.
It is focused on the acquisition, exploration, development, mining,
and production of precious metals, with emphasis on gold and
silver. The Company's plan of operation is to conduct mineral
exploration activities in order to assess whether the sites
possesses mineral deposits of gold or other precious metals in
commercial quantities, capable of commercial extraction.
The Board of Directors of American Sierra views this merger as
an opportunity to join forces with a company that has similarly
aligned goals and values, and is farther down the execution road.
Aside from the obvious economies of scale, the synergistic benefit
is very high.
"We are, as a company, looking forward with great enthusiasm to
joining forces with Colorado Goldfields toward accessing Colorado
Goldfields' existing and new mining exploration and development
opportunities, as well as the outstanding value-add presented by
the much anticipated near-term launch of The Pride of the West
Mill," stated James Vandeberg, President and CEO of American Sierra
Gold.
"The fact that American Sierra on behalf of the Company's over
seven thousand shareholders showed this commitment to Colorado
Goldfields strongly supports our business model and the course our
company is taking. After four years of total and consistent
dedication and perseverance in the face of a very challenging
worldwide economic climate, the strategic expansion of our
shareholder base and the strengthening of our capital base opens up
new growth prospects for us and creates further potential for
acquisitions," said Stephen Guyer, CFO of Colorado Goldfields.
Gold stocks
About Colorado Goldfields Inc. Colorado
Goldfields Inc. (OTCQB: CGFIA) (http://www.cologold.com) is a
Denver-based junior exploration and mining company primarily
exploring for gold and silver. Our seasoned management team targets
historic gold camps with strong potential for multiple deposit
discoveries. Currently, our business model in Colorado provides an
outstanding combination of former producing properties with
excellent exploration and production potential and a currently
inactive, modern, up to 700 ton per day capacity mill facility to
allow for an attractive short-term production time frame. We expect
that this strategic plan will allow Colorado Goldfields to reach
its goal of profitability, potentially within the next 18
months.
The Company has made available a current CGFIA Fact Sheet in PDF
format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.
Notice regarding forward-looking
statements This news release may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements or information includes statements regarding the
expectations and beliefs of management. Forward-looking statements
or information include, but are not limited to, statements or
information with respect to known or unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Forward-looking
statements or information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements or
information, including, without limitation, risks and uncertainties
relating to obtaining financing to meet the Company's exploration
program and operating costs during its exploratory stage, the
interpretation of exploration results and the estimation of mineral
resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations, accidents, equipment breakdowns, title
matters, or other unanticipated difficulties with or interruptions
in production and operations, the potential for delays in
exploration or development activities or the completion of
feasibility studies, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, regulatory
restrictions, including the inability to obtain mining permits and
environmental regulatory restrictions and liability, the
speculative nature of mineral exploration, dilution, competition,
loss of key employees, and other risks and uncertainties, including
those described under "Risk Factors" in the Company's Annual Report
on Form 10-K filed on November 23, 2011, which is on file with the
Securities and Exchange Commission at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
as well as the Company's other SEC filings. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements or information. The Company does not undertake any
obligation to release publicly revisions to any "forward-looking
statement," to reflect events or circumstances after the date of
this news release, or to reflect the occurrence of unanticipated
events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors -- The United States
Securities and Exchange Commission permits U.S. mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. We use certain terms on this website (or press release),
such as "measured," "indicated," and "inferred" "resources," which
the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosures in our 10-K which may be
secured from us, or from the SEC's website at
http://www.sec.gov/Archives/edgar/data/1344394/000095012311100285/0000950123-11-100285-index.htm,
his press release may contain information about adjacent properties
on which we have no right to explore or mine. We advise U.S.
investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC. U.S.
Investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our
properties.
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Contact: Investor Relations Colorado Goldfields Inc.
866-579-9444 or 303-984-0524 http://www.cologold.com