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Colt Resources: Colt Executes Binding LOI on Passa Frio at Tabuaco

Contributed by Fox-Davies Capital

Colt Resources has executed a binding letter of intent to purchase land on which to build the necessary surface mining infrastructure at the recently awarded Tabuago experimental mining license that includes the Tabuago (Sao Pedro das Aguias) and Aveleira tungsten

- Passa Frio located within the Tabuago experimental mining license area

- Passa Frio is mostly vacant land over an area of approximately 1,000,000m2

- Land will be used to establish the surface mining infrastructure including the processing plant, dams, dumps and adjoining warehouses.

- Land is already zoned to permit this construction

- Property is situated away from residential areas such that it is mostly unnoticeable from the surrounding roads and nearby villages

- Colt will pay EUR100,000 for the three-year option and an additional EUR350,000 to purchase the property should the Company decide to exercise the option.

The Company will spend the next few months to survey the property and to verify the legal title. If the land proves suitable, this is very positive as it will enable the Company to locate all the surface infrastructure close to where it plans to excavate both an access adit and a vertical shaft at the Sao Pedro das Aguias deposit. Importantly the land is already zoned to permit the construction which should speed up the permitting process, which can take time in Portugal. We suspect Colt had already discussed the acquisition with the owner previously but we are awaiting the award of the Experimental Mining Lease at Tabuago which was granted last month.