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Trading Symbols:
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GTP - (TSX-V)
P01 - (FRANKFURT)
COLTF - (OTCQX)
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MONTREAL, June 4, 2014 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF)
announces today that in order to meet short term working capital
requirements and to strengthen its balance sheet, it has accepted an
offer from its Executive Chairman, Richard Quesnel, by which he will be
purchasing up to 4,444,444 shares of Colt Resources Middle East
("CRME") for $1 million CAD. This represents a price of $0.225 per
share and a 50% premium to the CRME financing completed in March 2014.
The transaction has been approved by Colt's board of directors and
received conditional approval from the TSX Venture Exchange. This offer
has effectively triggered a ROFR by which all the remaining CRME
shareholders now have 30 days to exercise their pro rata right to match
Mr. Quesnel's offer. This transaction combined with an aggressive cost
cutting program gives Colt the financial flexibility to pursue parallel
funding initiatives necessary for the completion of bankable
feasibility studies at both of its flagship Portugal projects, namely
the Boa Fé-Montemor Gold Project and the Tabuaço Tungsten Project. As a
result of this transaction and in order to address potential conflict
of interest issues in the future, Mr. Quesnel will be stepping down
from Colt's board of directors and resigning as Executive Chair but he
will however be working very closely with Colt management and board to
assist them with the continued advancement of several ongoing strategic
initiatives under discussion. In his new role Mr. Quesnel has accepted
to Chair the Company's Advisory Board. Colt will also benefit from Mr.
Quesnel's enhanced focus on his role of CEO in the development of CRME
of which it will retain a significant stake of 12,222,223 shares
representing 27.9%.of the outstanding shares.
About Colt Resources Inc.
Colt Resources Inc. (www.coltresources.com) is a Canadian mining exploration and development company engaged in
acquiring, exploring, and developing mineral properties with an
emphasis on gold and tungsten. It is currently focused on advanced
stage exploration projects in Portugal, where it is one of the largest
lease holders of mineral concessions.
The Company's shares trade on the TSX‐V, symbol: GTP; the Frankfurt
Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.
FORWARD-LOOKING STATEMENTS: Certain of the information contained in this
news release may contain "forward-looking information". Forward-looking
information and statements may include, among others, statements
regarding the future plans, costs, objectives or performance of Colt
Resources Inc. (the "Company"), or the assumptions underlying any of
the foregoing. In this news release, words such as "may", "would",
"could", "will", "likely", "believe", "expect", "anticipate", "intend",
"plan", "estimate" and similar words and the negative form thereof are
used to identify forward-looking statements. Forward-looking statements
should not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether, or the times
at or by which, such future performance will be achieved.
Forward-looking statements and information are based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Company's control. These risks, uncertainties and
assumptions include, but are not limited to, those described under
"Risk Factors" in the Company's annual information form available on
SEDAR at www.sedar.com and could cause actual events or results to differ materially from
those projected in any forward-looking statements. The Company does not
intend, nor does the Company undertake any obligation, to update or
revise any forward-looking information or statements contained in this
news release to reflect subsequent information, events or circumstances
or otherwise, except if required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release
SOURCE Colt Resources Inc.
