Tolima Gold to acquire gold exploration and development properties in Colombia

Tolima Gold announced today that it has entered into a binding letter of intent to acquire Remedios Gold Holdings SA, a Panamanian company with a Cobest gold concentratorslombian subsidiary (Remedios Colombia SAS) which is the beneficial holder of six mining concessions with an aggregate area of approximately 637 hectares; 3 applications for concessions with an aggregate area of approximately 11,500 hectares and a gold processing and recovery plant with a capacity of approximately 100 tons per day, all in the Remedios/Segovia mining district in Antioquia, Colombia.

As consideration for this acquisition Tolima agreed to pay the vendors nine million US Dollars (US$9,000,000) to be paid over a period of up to one year depending on issuance and recording to Tolima of the applications for mining concessions, including a one million US Dollar (US$1,000,000) deposit paid at signing; two and a half million (2,500,000) common shares of Tolima; an exploration commitment on the acquired mineral properties of twelve million US Dollars (US$12,000,000) over a period of three years; and a payment on mineral resources identified in the acquired mineral properties (once the exploration commitment has been completed) as per a NI 43-101 report, of US$14 per ounce of gold identified as measured and indicated resources, and US$7 per ounce of gold identified as inferred resources...