News & Analysis » Canada

Colt Resources: Non-Broker Private Placement in Progress

Contributed by Fox-Davies Capital

Colt Resources has announced that it has secured firm commitments to sell on a non-brokered private placement basis to Asian and Portuguese based investors as well as a number of the Company's directors up to 17.777M shares at a price of C$0.45 per share for total gross proceeds of up to C$8.0M.

The Non-Brokered Private Placement is scheduled for two closings, one today and one on or about January 11, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Non-Brokered Private Placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. Today, the Company will complete an initial closing for 6.0M common shares for total gross proceeds of $2.7M and is expecting to complete a final closing on or about January 11, 2013. The Company will pay a finders' fee of up to 6 per cent cash and 6 per cent non-transferable compensation warrants. Each compensation warrant entitling the holder to purchase one additional common share of Colt at C$0.55 per share up to and including the 7th day of January 2014.

The majority of the net proceeds from the Non-Brokered Private Placement will be applied towards the Company's Boa Fe Montemor gold project and for general corporate working capital purposes. Colt Resources has recently discovered a significant new gold zone beneath its Chamine Deposit and intersected several rich areas closer to surface in both the Chamine and the Casas Novas deposits. Deep drilling recently commenced and yielded two very successful holes reported on the 21st December 2012. Before doing any further deep holes the Company plans to conduct downhole geophysics to better target the deep drilling. This is required because the mineralisation is structurally controlled in what is a complex shear zone that has undergone multiple grades of metamorphism, and is heavily intruded and folded. Colt believes this style of mineralisation is similar to that at "Red Lake" in Canada.