Colorado Goldfields (CGFIA) secures $1 million in new financing
Posted on: June 3rd, 2010Written by:
Colorado Goldfields Inc. (OTCBB: CGFIA) announced today that the Company has closed a funding arrangement with an institutional investor in the amount of $1 million. The money will be focused on funding the Company’s aged debt and for working capital requirements, including work detail on the reactivation of The Pride of the West Mill.
Commenting on the recent transaction, Lee Rice, President and CEO of Colorado Goldfields, stated, “This funding facility will support the execution of the Company’s business plan, the re-activation of the Pride of the West Mill, while contemporaneously launching an aggressive exploration program at our Brooklyn and King Solomon Mines.”
The Pride of the West Mill is a modern gravity, flotation and cyanide leach mill located on 120 acres, with offices, laboratory and water rights. The Mill has the capacity to refine up to 700 tons per day, and is particularly valuable because it is the only production size mill in the entire regions of Southwestern Colorado, Northwestern New Mexico, Northeastern Arizona, and Southeastern Utah. Located within a short distance of the mill there are over 1,000 mines and many gold and silver mining companies. Of the several hundred junior mining companies in North America, Colorado Goldfields enjoys the distinction of being the only one with the capability to perform its own milling.
Furthermore, the Chief Financial Officer for Colorado Goldfields, C. Stephen Guyer, commented, “There is no question that over the past few years the challenges surrounding capital availability has slowed our progress. Now, Colorado Goldfields has the financing vehicle to meaningfully begin executing our business model. Our shareholders to whom we owe much gratitude for their continued support and confidence should now have a comfort level that many, if not all, of our milestone objectives may soon be reached.”
Instrumental in arranging the financing facility for Colorado Goldfields was New York City-based 1st SB Partners Ltd., a consulting firm providing strategic advisory services in the micro cap realm.
