CRME transaction and Richard Quesnel appointed Chair of Colt's Advisory Board
Canada NewsWire
MONTREAL, June 4, 2014
| 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.
