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.