/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
GTP - (TSX-V)
P01 - (Frankfurt)
COLTF - (OTCQX)
MONTREAL, May 4 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the
"Company") (TSXV: GTP) (FSE: P01) (OTCQX: COLTF) is pleased to announce
that it has completed its previously announced bought deal public
offering (the "Offering") of 18,600,000 common shares of the Company
(the "Common Shares") at a price of C$0.72 per Common Share, for
aggregate gross proceeds of C$13,392,000. The Offering was completed
by a syndicate of underwriters led by Canaccord Genuity Corp. and
included Desjardins Securities Inc., Laurentian Bank Securities Inc.
and D&D Securities Inc. (collectively, the "Underwriters").
Pursuant to the terms of the underwriting agreement dated April 13, 2011
entered into between the Company and the Underwriters, the Company paid
the Underwriters a 6% cash commission and granted compensation options
to the Underwriters entitling them to purchase that number of Common
Shares as is equal to 8% of the aggregate number of Common Shares
issued and sold under the Offering for a period of 18 months from the
date of closing.
The net proceeds of the Offering will be used to fund the exploration
and development of the Company's Montemor and Tabuaço projects and for
general corporate working capital purposes.
The Company is also pleased to announce that it has obtained
subscriptions for an additional issuance and sale by way of a private
placement of 4,402,000 Common Shares of the Company, at a price of
C$0.72 per Common Share, for aggregate gross proceeds of C$3,169,440.
In connection with this private placement, the Company has agreed to
pay certain finders a 6% cash commission and grant compensation options
to such finders entitling them to purchase that number of Common Shares
as is equal to 8% of the aggregate number of Common Shares issued and
sold under the private placement for a period of 18 months from the
date of closing. The Company expects to complete this private placement
before May 6, 2011. The Common Shares issued pursuant to the private
placement will be subject to a 4 month hold period in Canada.
"We are extremely pleased with the reception obtained in the marketplace
with Colt's first public offering placed in Canada and in Asia and its
continued strong support from its core European shareholder base who
have committed to subscribe to the private placement," stated Nikolas
Perrault, President and CEO. "The Company is now in a strong position
to pursue the development of its key properties and advance them to the
This press release does not constitute an offer of securities for sale
in the United States. The securities being offered have not been, nor
will be, registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States absent
U.S. registration or an applicable exemption from U.S. registration
About Colt Resources Inc.
Colt Resources Inc. is a Canadian junior exploration 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 second largest lease
holder of mineral concessions.
The Company's 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 revised annual information form dated
April 20, 2011 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.
For further information:
| Nikolas Perrault, || Helen Bilhete, |
| President & CEO || Director Investor Relations |
| Colt Resources Inc. || Colt Resources Inc. |
| Tel: (514) 317-6301 || Tel: (514) 317-6301 |
| Fax: (514) 317-6302 || Fax: (514) 317-6302 |
| firstname.lastname@example.org || email@example.com |
Renmark Financial Communications Inc.
Florence Liberski: firstname.lastname@example.org
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Tel.: (514) 939-3989 or (416) 644-2020