Trading
Symbols:
|
GTP –
(TSX-V)
|
|
P01 –
(FRANKFURT)
|
|
COLTF – (OTC
Pink)
|
MONTREAL, June 23, 2015 /CNW Telbec/ - Colt Resources Inc.
("Colt" or the "Company") (TSXV: GTP) (FRA: P01)
(OTCPink: COLTF) is pleased to announce that it has entered into an
agreement (the "Agreement") with CITC-GEM Limited
("CITIC-GEM Fund"), a natural resources fund created by
Global Emerging Markets ("GEM") and CITIC, whereby Colt has
the option, at its sole discretion, to issue and sell, and
CITIC-GEM Fund is committed to purchase common shares of Colt
(the "Common Shares") for an aggregate value of up to
$30,000,000. Funds raised through
this facility will be used to assist in the implementation of
Colt's growth strategy, through increased participation in Colt
Resources Middle East ("CRME"), other potential
acquisitions, or otherwise, as well as for general corporate and
working capital purposes.
CRME is focused on securing and developing world class mining
opportunities in the Greater Middle
East and South Asia
regions. CRME primary area of interest is Greater Balochistan known
for its copper, gold and rare earth potential.
In accordance with the terms of the Agreement, Colt will have
the right, from time to time during a period of up to
36 months from the execution date of the Agreement, to issue
and sell to CITIC-GEM Fund, and CITIC-GEM Fund undertakes to
acquire from Colt, Common Shares for a maximum aggregate
consideration of $30,000,000
(the "Commitment Amount") upon exercise by Colt of a
draw down (each, a "Draw Down").
Colt will control the timing and maximum amount of any Draw
Down, and has the right, not the obligation, to draw down on the
Commitment Amount. The maximum amount of a Draw Down will be the
lesser of (i) 1,000% of the average daily trading volume during the
15 trading days immediately preceding the date of a Draw Down; or
(ii) the remaining portion of the Commitment Amount. The Common
Shares issued under the Agreement will be subject to statutory
resale restrictions, but CITIC-GEM Fund will receive freely
transferable and unrestricted Common Shares through a share lending
facility which will be provided by Colt's current shareholders.
Colt has also agreed to pay in connection with the Agreement up
to 2% of the Commitment Amount in fee to CITIC-GEM Fund
(the "Fee").
The subscription price for the Common Shares issued under the
Agreement will be equal to 90% of the average closing price of the
15 trading days immediately preceding the date of a Draw Down,
which subscription price may not be lower than the floor price
determined by Colt for such Draw Down and the Discounted Market
Price (as such term is defined in the TSXV's Corporate Finance
Manual). The Agreement remains subject to the approval of the TSV
Venture Exchange. A copy of the Agreement will be available
electronically at www.sedar.com.
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 TSXV, symbol: GTP; the
Frankfurt Stock Exchange, symbol: P01; and, the OTC Pink, symbol:
COLTF.
About Global Emerging Markets
Global Emerging Markets ("GEM"), www.gemny.com, was
founded in 1991. GEM is a $3.4 billion investment group having
completed 365 transactions in 65 countries. The firm is
an alternative investment group that manages a diverse set of
investment vehicles across the world. GEM's funds include:
CITIC-GEM Fund, Kinderhook, GEM Global Yield Fund, GEM India and VC Bank/GEM Mena Fund*
(*GEM exited both its LP and GP stakes in Q1 2010.)
About CITIC
CITIC, otherwise known as the China International Trust and
Investment Company, is China's
largest native multinational company with over $125 billion of
total assets, 44 subsidiaries and true global reach and
influence.
FORWARDLOOKING STATEMENTS: Certain of the information
contained in this news release may contain forwardlooking
information". Forwardlooking information and
statements may include, among others, statements regarding the
future plans, costs, objectives or performance of 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
forwardlooking statements.
Forwardlooking 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.
Forwardlooking statements and information are based on
information available at the time and/or management's
goodfaith 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 forwardlooking
statements. The Company does not intend, nor does the Company
undertake any obligation, to update or revise any
forwardlooking information or statements contained in this
news release to reflect subsequent information, events or
circumstances or otherwise, except if required by applicable
laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Colt Resources Inc.