|April 20, 2011|
Columbus Silver Provides Update on Santa Fe Merger
|Vancouver, BC, Canada; April 20, 2011 -- Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver") is pleased to provide an update to the business combination with Santa Fe Gold Corporation ("Santa Fe"), originally announced September 27, 2010 and updated February 1, 2011 (the "Business Combination").|
As reported on February 1, 2011, Columbus Silver has been informed that Santa Fe is not current with its Canadian SEDAR filings. As a consequence of the foregoing, Columbus Silver understands that in 2003 the British Columbia and Ontario Securities Commissions issued cease trade orders against Santa Fe (the "Cease Trade Orders"). Santa Fe has announced today that it is continuing to use reasonable efforts to obtain a revocation of the Cease Trade Orders.
Santa Fe's President and CEO, Pierce Carson, said, "We cannot take any steps in furtherance of the previously announced transaction with Columbus Silver until the cease trade orders have been revoked by the British Columbia and Ontario Security Commissions. However, although no assurances can be given that we will be successful, should the cease trade orders be revoked, we intend to pursue a transaction with Columbus Silver."
Robert F. Giustra, Columbus Silver's President and CEO, commented, "We remain supportive of Santa Fe's efforts. A potential business combination or strategic relation should deliver both near and long-term value to Columbus Silver and Santa Fe shareholders through existing production growth as well as significant development and exploration upside from a diverse portfolio of precious metal properties."
ON BEHALF OF THE BOARD,
Robert F. Giustra
President & CEO, Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting the proposed merger and transactions ancillary thereto. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability of Santa Fe to complete its requisite filings and have the cease trade orders issued against it revoked in a timely fashion; the ability to acquire necessary authorizations; the entering into a definitive agreement; obtaining approval of the TSX Venture Exchange; obtaining approval of shareholders; obtaining court approval; obtaining applicable US approvals; cost increases; possibility of a competing offer arising; unforeseen circumstances; risks associated with the exploration projects or title thereto held by Columbus Silver Corporation; mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that Santa Fe will be successful in bringing its Canadian continuous disclosure filings up to date and that the British Columbia and Ontario Securities Commissions will as a consequence thereof revoke the cease trade orders against Santa Fe in a timely fashion; that diligence inquiries will be successful; that required approvals mentioned above will occur; the timing and receipt of required approvals; that shareholders will vote in favor of the transaction; that applicable securities exemptions will be available for the amalgamation; that required service providers will be available to assist with the transaction; that items required for mandated disclosure are available; general business and economic conditions; availability of financing; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.