Trading Symbols: |
GTP - (TSX-V)
P01 - (FRANKFURT)
COLTF - (OTCQX) |
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.