Trading
Symbols:
|
GTP –
(TSX-V)
P01 –
(FRANKFURT)
COLTF –
(OTCQX)
|
MONTREAL, May 13, 2014 /CNW Telbec/ - Colt Resources Inc.
("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF)
announces that its affiliate, Colt Resources Middle East ("CRME")
has entered into an exclusivity agreement (the "Agreement") with
Lake Resources N.L. ("Lake") an Australian based global mineral
exploration company and trading on the Australian Stock Exchange.
Colt owns 38% of CRME and is currently its largest shareholder. The
Agreement sets out the terms and conditions whereby CRME can earn a
majority interest in Lake's Chagai Hills exploration licenses in
Balochistan, Pakistan. The Agreement sets an exclusivity
period of 120 days and, during this period, the parties aim to
conclude the final terms and conditions of a joint venture (the
"Joint Venture").
The Chagai Hills exploration licenses cover three primary mining
areas, as indicated in the accompanying map below, namely Amalaf,
Dasht-i-Gaurance and Koh-i-Sultan. The Amalaf area adjoins the
northern boundary of the Saindak copper-gold mine. The exploration
target is large tonnage: low grade copper amenable to low-cost
open-pit mining and trucking to the adjacent Saindak mine operated
by Chinese company Metallurgical Construction Corporation. The
Dasht-i-Gauran area is situated to the west of copper
mineralisation reported by Tethyan Copper Company from drilling at
its Sor Baroot Prospect at the Reko Diq Project, and covers a
number of possible alteration zones identified from interpretation
of satellite images. At Koh-i-Sultan, Lake is exploring for gold
and copper associated with an extensive system of intensely altered
breccia and volcanics covering an area of more than five square
kilometres on the margin of an extinct volcanic caldera.
Limited drilling by Lake has encountered significant copper
and gold values associated with porphyry copper-type
mineralization.
It is expected that there will be three parties to the Joint
Venture namely, Lake, CRME and Amir Resources Consultants ("Amir").
A Pakistan company will be
incorporated (OpCo) into which Lakes' exploration licenses will be
transferred. CRME will subscribe to a minimum of USD $1.9 million worth of shares for 60% of Opco for
the purposes of investing in exploration of the territory covered
by the licenses within 3 years. The balance of shareholdings will
be divided between Lake and Amir, holding 27.5% and 12.5%
respectively. Subsequently, CRME will invest USD $3.1 million, for a minimum aggregate of USD
$5 million, over 6 years in OpCo for
the purposes of exploration whereby the shareholdings will become
CRME at 60%, Lake at 15%, and the Government of Balochistan at 12.5% and Amir at 12.5%.
Should CRME exceed USD $5 million
of investments in Opco, CRME can earn in such that Lake and Amir
will be diluted until Lake and Amir each reach 10%. Lake's 10%
shareholding will then revert to a 10% carried interest with Lake's
share of the investment payable from 80% of Lake's share of net
profits. Amir, on diluting to a 10% shareholding, will revert
to a 5% free carried net profits interest. In the event CRME
invests only the minimum of USD $1.9
million within 3 years, then the shareholdings of OpCo will
revert to CRME holding 51%, Lake holding 40% and Amir with 9%.
Both Lake Resources and CRME are excited about the opportunity
offered by the Agreement and look forward to concluding the Joint
Venture soon in order to be able to continue to develop the
significant resource potential of the licensed areas.
Richard Quesnel, President and CEO
of CRME stated "By partnering with Lake Resources, the local
community and the Government of Balochistan, we believe that we can become an
engine that could potentially develop what could be a world class
asset in the Chagai Hills copper/gold district". Jim Clavarino, Executive Director of Lake
Resources stated that "I am very pleased to have concluded this
initial agreement with CRME and feel they are the right partner to
continue the significant work already carried out by our company in
Balochistan". CRME is focused on
securing and developing mining opportunities in the Greater Middle East region.
http://files.newswire.ca/1241/colt.pdf
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 focused on advanced stage development projects in Portugal as well as securing additional
advanced stage mining projects.
Alexandra Akyürek MCSM, CSci MIMMM, Principal Exploration
Geologist, SRK Exploration Services, is an independent Qualified
Person, as defined in NI 43‐101. Mrs Akyürek has reviewed the
technical content of this press release, and consents to the
information provided and the form and context in which it
appears.
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.