Colt Resources Inc. (COLTF)

[gsfl]

Colt to proceed with a Private Placement
Colt Resources Inc. (“Colt” or the “Company”) will proceed with a non-brokered private placement financing of 10,000,000 Units at a price of CAD $0.35 per Unit raising gross proceeds of CAD $3,500,000.
Each Unit consists of one common share of Colt and one-half common share purchase warrant of Colt. One full warrant shall entitle the holder to acquire one additional common share of Colt at CAD $0.45 per share up to and including the 25th day of February 2012.
The Company will use the proceeds of this financing to accelerate work currently underway on its concessions in Portugal where Colt is the second largest holder of mineral claims, and for general working capital purposes.
Where appropriate, the Company will pay a finders fee of up to 8 per cent cash and 8 per cent non- transferable compensation warrants. Each compensation warrant entitling the holder to purchase one additional common share of Colt at CAD $0.35 per share up to and including the 25th day of February 2012.
The Closing of this private placement is expected within a few days as the company has received strong interest from European and North American investors in the last few weeks especially since the acquisition of the highly advanced stage Montemor gold project.
The securities issued pursuant to the private placement will be subject to a four month hold period and the offering will be subject to normal regulatory approvals.