Cabia Goldhills Inc. Announces the Second Closing of Its Private Placement and Execution of a Major Drilling Contract for Its Ongoing Exploration Project
MONTREAL, QUEBEC--(Marketwire - Dec. 3, 2012) - Cabia Goldhills Inc. ("Cabia") (TSX VENTURE:CGH) is pleased to announce that it has completed on this day the second closing of a non brokered private placement pursuant to which 2,440,000 Units were issued for gross proceeds of $610,000. Each Unit is comprised of one common share of Cabia and one-half of a common share purchase warrant, each full warrant entitling the holder to acquire one Cabia common share at a price of $0.45 for a period of two years.
The private placement is comprised of a maximum of 8,000,000 Units, of which an aggregate of 3,910,000 Units have now been issued as part of the first two closings. Additional Units may be issued at a later date as part of one or more additional closings.
The Private Placement was completed pursuant to prospectus exemptions under applicable securities legislation. The securities issued in the private placement are subject to a "hold period" under applicable securities legislation and the policies of the TSXV ending April 4, 2013. A director of Cabia acquired 100,000 Units as part of the private placement.
The proceeds of the private placement are being used to finance some of the costs related to the acquisition of the Mejia Mines as announced in Cabia's press release of September 11, 2012, acquisition of other concessions and the ongoing exploration program on the Mejia Project, including a 3,000 meter drilling program set to start as soon as all of the permitting is completed. Cabia has just signed an agreement with Major Drilling, an international drilling company for a minimum of 3000 meters with the possibility of a 2000 meter extension pending results from the first phase. The work shall consist of diamond coring utilizing the HQ coring system (63.5mm core diameter) to depths of 300 to 350 meters.
Cabia's Mejia Project is a 6,946 ha mineral concession located close to sea level and outside any environmentally restricted areas in the San Lucas gold district in the Sur de Bolivar region of the Department of Bolivar, Colombia. The San Lucas gold district is an under explored area where intense artisanal mining is present, including four artisanal mines adjacent to the Mejia Project, namely La Gloria Mine, El Fogaje Mine, Los Romanes Mine and El Turco Mine (the "Mejia Mines"), as described in Cabia's NI-43-101 report on the Mejia Project available on the company's SEDAR profile at http://www.sedar.com Cabia's geological team has found evidence for the presence of porphyry style mineralization located at depth on the Mejia Project, with the potential to host a gold-copper-molyporphyry system, which has become one of the main focus of the current exploration program.
About Cabia Goldhills Inc.
Cabia Goldhills is a TSX-V listed junior exploration company focused upon the exploration and development of gold projects in Colombia. Taking into account the shares issued to date in the private placement, Cabia currently has less than 39 million shares outstanding.
Prospective Statements, Quality Control and Assurance:
Statements in this press release contain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Readers are cautioned that assumptions used in the preparation of forward-looking information may prove to be incorrect. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. There is no guarantee that the acquisition of the Mejia Mines will be completed.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors (many of which are beyond the control of Cabia) that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions, the risks associated with the mining exploration, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration, development and production; delays or changes in plans; competition for and/or inability to retain other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; risks associated to the uncertainty of reserve estimates; governmental regulation, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; the uncertainty of estimates and projections of production, costs and expenses; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; incorrect assessments of the value of acquisitions; the need to obtain required approvals from regulatory authorities; stock market volatility; access to capital; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Cabia does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cabia Goldhills Inc.
Mr. Maurice Montpetit
Vice President, Business Development