Colt Resources is proceeding with a small, non-brokered private placement to cover exploration expenditures on its Quebec mineral properties. The company intends to raise C$0.163m from the sale of 65,000 units at C$2.50 each. A unit consists of ten common shares and ten share purchase warrants, each exercisable at 35 cents per share for a twelve-month period from the date of closing.
Objective's view:
Colt’s focus remains on its Penedono property in Portugal. Earlier this summer, the company arranged the private placement of twenty million shares at C$0.25 each, for gross proceeds of some C$5.0m, and most of this cash will cover exploration expenses at Penedono, the Armamar-Meda project, also in Portugal, and Extra High, in British Columbia. We view the Quebec uranium properties as having a significantly lower priority and believe the results from Portugal continue to support our base-case valuation.
