Trading Symbols:
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
companies
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 Direcção-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.
