VANCOUVER, British Columbia, Sept. 29, 2005 (PRIMEZONE) -- Colombia Goldfields Ltd. (OTCBB:CGDF) is pleased to announce the signing of a definitive agreement with Investcol Limited, whereby the company has acquired an option to purchase a 100% interest in certain mining and mineral rights on three advanced gold properties known as the Caramanta concessions strategically positioned in the heart of the Marmato Mountain mining district.
Under the terms of the deal, Colombia Goldfields can earn its 100% interest by spending US$2.99 million in exploration and development on the 12km(2) project over a three-year period and issuing 2,000,000 restricted shares of common stock. The company has pre-paid the entire first year exploration program by advancing their experienced team of Colombian-based geologists US$500,000. The initial work program consisting of detailed mapping, geochemical rock sampling and trenching has commenced.
"I am extremely optimistic about the potential of the Caramanta gold concessions. The Marmato Mountain mining district has been producing gold for more than 500 consecutive years and is one of the most underdeveloped mining regions in the entire western hemisphere. If there has ever been a district capable of birthing a world-class gold deposit I am convinced this is it," stated Daniel Hunter, the company's Chairman and CEO.
Mr. Hunter continues by saying, "You know things have turned around in Colombia when conservative mining giants such as Anglo Gold have staked over 1.2 million hectares throughout the country and have moved their South American exploration office to Bogota, Colombia. I believe they realize what many in the mining industry have been aware of for many years, Colombia is a mineral-rich country that has historically been a top producer of gold and the country is stabilizing rapidly under the leadership of President Alvaro Uribe. His commitment to reforms aimed at encouraging foreign investment in the mining sector, while reducing the state's role as a producer of minerals, is very encouraging. For the full terms of the deal, interested investors are encouraged to review the company's recent 8-K filing at www.sec.gov. and visit our website at www.colombiagoldfields.com."
About Colombia Goldfields:
Colombia Goldfields intends to build a diversified portfolio of international precious metals resources in underdeveloped mineral-rich countries by developing advanced exploration projects providing maximum leverage in a time of increasing economic uncertainty. Presently, the company has acquired an option on three advanced projects located in the heart of one of Colombia's richest mining regions -- the Marmato Mountain Mining District. The company can earn a 100% interest in the projects, known as the Caramanta concessions, by spending US$3 million over a three-year period.
This release contains forward-looking statements that are based on the beliefs of Colombia Goldfield's management and reflect Colombia Goldfield's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate, "project", "believe", "anticipate", "intend", "expect", "plan", "predict", "may", "should", "will", "can", the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Colombia Goldfields with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements.
On behalf of the board Daniel Hunter - Chairman & CEO Colombia Goldfields Inc. (OTCBB:CGDF) Suite 610- 375 Water Street Vancouver, British Columbia Canada V6B 5C6 Phone: 604-691-6518 Fax: 604-801-5575 info@colombiagoldfields.com