Colt Resources Signs MOU with Star Mining on its newly awarded Borba Licence
GTP – (TSX-V)
P01 – (Frankfurt)
COLTF – (OTCQX)
MONTREAL, Feb. 25, 2013 /PRNewswire/ – Colt Resources Inc. (“Colt” or
the “Company”) (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is very pleased to
announce that is has executed a memorandum of understanding with
privately owned Star Mining Limited (“Star Mining”) setting the key
terms for the definitive agreement, which the parties intend to execute
within the next 60 days.
Colt and Star Mining will jointly explore the Borba Licence (Press
Release: February 20, 2013) and have agreed that Star Mining will
develop a work program and has the right to earn-in progressively full
ownership of the Borba Licence. Upon the completion of a work program
and expenditures of not less than $350,000 USD over a period of up to
12 months, Star Mining may initially earn a 25% interest in the Borba
Licence. Subsequently and upon the completion of a work program and
expenditures of not less than $750,000 USD over a further period of up
to 24 months, Star Mining may earn a 35% interest in the Borba Licence.
Star Mining may then elect to spend a further $1,000,000 USD by
carrying out additional technical, commercial and environmental
programs on the Borba Licence area for the purposes of working towards
the completing a National Instrument 43-101 technical compliant
resources report to earn a further 20% ownership of the concession.
Once Star Mining has obtained an 80% ownership interest in the Borba
Licence, Colt’s remaining 20% ownership will revert to a carried
interest. Star Mining will also have the option to purchase this
remaining 20% interest of the Borba Licence at either $5,000,000 USD
within 18 months of obtaining an 80% interest or for $10,000,000 USD at
any time during a subsequent 42 month period.
Star Mining is a private natural resource company focused on base metal
and precious metal exploration and mine development projects. The
principal shareholders and directors have been engaged continuously in
the mining industry for over 30 years and responsible for taking
projects from exploration through bankable feasibility and project
financing to mine construction and commissioning. They have directed
and managed major mine projects in North and Central America, Europe
and across the former Soviet Union. The directors have held senior
executive directorships in Canadian and UK stock exchange listed mining
companies and currently are directors of several London listed
The President and CEO of Colt, Nikolas Perrault, commented, “We are very
pleased with this agreement which while being non-dilutive to
shareholders gives Colt near term, as well as significant long-term,
upside exposure to yet another promising project in Portugal where Colt
has been steadily building its presence since 2007.” Rowan Maule, CEO
of Star Mining, commented, “We look forward very much to commencing our
exploration activities and we are particularly pleased to be in
partnership with Colt, benefiting from their extensive experience in
mineral project advancement in Portugal.”
The transaction is subject to the approval of the DirecÃ§Ã£o-Geral de
Energia e Geologia (DGEG), a division of the Portuguese Ministry of
Economy and Innovation.
About Colt Resources Inc.
Colt Resources Inc. 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 common 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.