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Colt Resources (COLT.CNQ) – arranging private placement; recent developments support our base-case and optimistic valuations

Source: http://www.objectivecapital.co.uk/ocuk/articles/080721-363.asp?oid=RDF
 Posted on Monday, July 21st, 2008 | In Small & Micro Cap, Stocks to Watch
Contributed by: Gabriel Didham (http://objectivecapital.co.uk) -

Reason for comment

Colt Resources is arranging for the private placement of twenty million units, priced at C$0.25 each. The non-brokered private placement could provide the company with gross proceeds of up to C$5.0m to cover exploration expenses in Portugal and general working capital.

Each unit consists of a common share and a share purchase warrant, exercisable at C$0.30 over the following three years from closing of the offering. If the placement is fully subscribed and the warrants are fully exercised, they would provide Colt with an additional C$6.0m in cash.

The company is continuing its drill programme on the Penedono concession in northern Portugal. Colt is targeting the No. 11 and No. 13 veins, which are part of the multi-vein Santo Antonio mineralised system. The company expects its first assays by mid-August. Regional fieldwork is also under way on the property.

Colt is concurrently assessing data from the nearby Armamar-Meda project. The company is examining information and historical results concerning three areas of tungsten mineralisation identified on the concession. Regional fieldwork is also in progress on the property.

Objective’s view:

Colt Resources could significantly expand its exploration plans at Penedono and Armamar-Meda, should it successfully complete its planned private placement. We believe the recent developments continue to support our base-case and optimistic valuations for the company and its key projects.

For all our previous comments on this company visit:
http://www.objectivecapital.co.uk/COLT.CNQ.asp

Last 5 posts by Gabriel Didham, CFA
About Gabriel Didham (http://objectivecapital.co.uk)
Gabriel Didham, CFA Managing Director, Objective Capital

Gabriel is a Chartered Financial Analyst and former number one rated analyst. He has extensive experience of regional and pan-sector research both here in the UK and abroad. He was previously the cofounder of Investinet and ExchangeSquare.com, for a time one of the internet’s most trafficked global financial websites.

Objective is a leading UK provider of objective corporate research.

We offer investors two levels of insight - a regular survey of the complete small and mid-cap segment, highlighting those stocks where attention should be focused, and our detailed institutional-quality, sponsored research coverage. As always, our research doesn't offer trading recommendations or advice but an objective up-to-date assessment of the prospects, and risks, of the companies we cover.

While the companies we cover sponsor our research, it is always written on behalf of our readers. It is of the essence of our research that it be independent - that is opinions, estimates and valuations be solely those of Objective's analyst; objective - that is based upon verifiable data; and transparent - that is based upon explicit assumptions.

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