COLUMBIA METALS CORPORATION LIMITED - ANNOUNCEMENT
TORONTO, ONTARIO--
Columbia Metals Corporation Limited (CDN - "COML") announces that
the exercise price attached to 1,266,667 October, 1999 $1.00
warrants, which entitled the holders to acquire one common share
at a price of $1.00 up until October 10, 1999, will be reduced to
$0.40 until the expiry of the warrants on October 10, 1999.
Columbia will not be implementing its previously announced
intention to reduce the exercise price attached to two series of
outstanding common share purchase warrants to $0.20 per share for
the 30 day period commencing May 15, 1999 and ending June 14,
1999. Columbia intends to use the proceeds derived from the early
exercise of the October Warrants for general working capital
purposes.
Columbia is also pleased to release a progress report on the
developments of POC*KIT Corporation. Columbia holds 20% of the
shares of POC*KIT Corporation and has the right to subscribe for
an additional 20% of POC*KIT for a further $1,700,000 payable 90
days after the completion of a pilot program and receipt of
appropriate approvals to permit commercial production of the
DIAPRO POC*KIT System. Columbia also has the option exercisable
upon its having acquired 40% of the outstanding shares to acquire
from Dr. Lea, the principal shareholder in POC*KIT Corporation,
a further 9% of POC*KIT for $1,100,000 (being 1% for each
$122,222 exercisable within 15 months of Columbia acquiring its
40% interest).
POC*KIT Corporation has acquired a new corporate head office, at
73 Galaxy Boulevard, Toronto, Ontario. POC*KIT has leased
approximately five hundred square meters of space, with three
hundred square meters dedicated for the pilot production line and
product development laboratories. The remaining space houses
management offices and meeting facilities.
Payments made by Columbia to date to acquire its 20% interest in
POC*KIT Corporation, totalling $850,000 will be used towards
developing a pilot plant production line. A state-of-the-art
quality control program is planned to enhance the manufacture of
the Corporation's proprietary, quantitative Point-Of-Care
diagnostic/prognostic BioChip and also to facilitate the design
of both the BioChip format and a prototype, hand-held electronic
reader to show results of the "on BioChip" immunodiagnostic test.
Columbia's funding should allow POC*KIT Corporation to
manufacture batch quantities of BioChips for verification of
their proprietary test platform in order to meet regulatory
requirements within the next twelve to fifteen months.
POC*KIT Corporation is continuing to evaluate the possible
formation of several strategic alliances. Future corporate
strategies for product development and marketing are being
studied in order to enhance shareholder value. Research funding
has also been received through the Industrial Research Assistance
Program (IRAP) sponsored by the National Research Council (NRC)
of Canada.
Peter Lea, Ph.D., President and CEO of POC*KIT Corporation said
"The initial grant support by IRAP for our product development
program is very encouraging. We are actively working towards
meeting NRC requirements for further financial support." POC*KIT
Corporation is a privately held biotechnology company.
While Columbia Metals Corporation Limited remains a junior
mineral exploration company, and continues to hold a 25% working
interest in two precious-base-metal properties in Mexico, the
shareholders of the Company on July 9th, 1999 approved the
diversification of the business of the Company away from mineral
resource exploration.
For further information contact Carl Di Placido, President, at
(416) 364-5756 or by fax at (416) 364-2595.
Suite 402, 121 Richmond Street West
Toronto, Ontario
M5H 2K1
Quoted on the Canadian Dealing Network Inc.
Symbol: COML
19,288,346 Common Shares issued and outstanding
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