Colibri and Partner Kickstart Diamond Drilling at Pilar, Secure CAD 1.5M Financing

Colibri Resource Corporation (TSXV: CRX) and its partner, Partner, have announced the commencement of diamond drilling at the Pilar project in Sonora, Mexico. This development follows the successful closure of a financing round, which raised CAD 1.5 million. The timing and terms of the financing align perfectly with Colibri's exploration and development plans for the Pilar project.

The financing proceeds will be used to fund the initial phase of the diamond drilling program, which aims to test the extensions of the known mineralization at the project. The program is expected to consist of approximately 2,000 meters of diamond drilling, focusing on the Main Zone and the North Zone. This phase is crucial for understanding the extent and continuity of the mineralization, which will guide further exploration and development decisions.

The CAD 1.5 million financing was oversubscribed, indicating strong investor interest in Colibri's projects. The funds were raised through a non-brokered private placement of units at a price of CAD 0.05 per unit. Each unit consists of one common share one-half of one common share purchase warrant, with each whole warrant exercisable at CAD 0.075 for a period of two years.

The successful closure of the financing demonstrates Colibri's ability to secure funding for its projects, which is essential for the company's growth and development. The funds raised will enable Colibri to advance the Pilar project, potentially leading to the discovery of new mineral resources and enhancing the project's value. As the diamond drilling program progresses, investors should closely monitor the results, as they may provide valuable insights into the project's potential and Colibri's future prospects.



The Pilar project is located in the Sonora-Mojave megashear, a major geological structure that has hosted significant gold and silver deposits in the past. The project is characterized by a complex network of faults and shear zones, which can act as conduits for mineralizing fluids. The diamond drilling program will target these structures, aiming to intersect mineralized zones and potentially expand the known mineralization.



In addition to the diamond drilling program, Colibri has successfully closed a non-brokered private placement financing, raising CAD 1.5 million. The funds will be used to support the diamond drilling program at Pilar, as well as for general working capital purposes. This financing round signals a vote of confidence from investors, enhancing Colibri's credibility and ability to secure additional funding in the future.

As the diamond drilling program at Pilar progresses, investors should stay informed about the assay results and any updates on the project's potential. The successful completion of the drilling program and the release of positive assay results could lead to an increase in Colibri's share price and attract further investment in the company. The expected timelines and milestones for the program are as follows:

1. Drilling commencement: Late Q2 2023
2. Drilling completion: End of Q3 2023
3. Assay results release: Q4 2023

The new financing structure, involving a CAD 1.5 million private placement and a CAD 1 million loan, increases Colibri's total debt by CAD 2.5 million. Assuming the company's equity remains constant, the debt-to-equity ratio (D/E) can be calculated as follows: D/E = (Total Debt + New Debt) / Equity. If Colibri's initial total debt was CAD 5 million and equity was CAD 10 million, the new D/E ratio would be (7.5 / 10) = 0.75 or 75%. This represents a 25% increase in financial leverage, indicating a higher risk profile for the company.

The closing of financing for Colibri's diamond drilling at Pilar signals a vote of confidence from investors, enhancing the company's credibility and ability to secure additional funding in the future. This successful financing round demonstrates Colibri's potential and may attract more investors, particularly those interested in the mining sector. However, future funding will depend on the company's performance, market conditions, and the success of its drilling operations.

In conclusion, Colibri and Partner's commencement of diamond drilling at the Pilar project, coupled with the successful closure of a CAD 1.5 million financing, positions the company for growth and potential discoveries. As the drilling program progresses, investors should closely monitor the results, as they may provide valuable insights into the project's potential and Colibri's future prospects. The new financing structure increases Colibri's financial leverage, but the company's ability to secure additional funding in the future will depend on its performance and market conditions.