Colt Resources (TSXV:GTP) announced the signing of a binding letter of intent with DSM Resource Corp. for an exclusive proposed earn-in arrangement, for the Boa Fe Montemor project in Portugal.
As quoted in the press release:
1. Assigns an additional 24% of the shares of Aurmont to DSM upon completion of Phase 2
2. Commits to assigning the remaining 25% of the shares of Aurmont to DSM, if DSM wants to own all of the shares of Aurmont and all of the Boa Fé Montemor property, after completion of Phase 2 and subject to the completion of an updated National Instrument 43-101 (“NI 43-101”) resource estimate and report for the Boa Fé Montemor property. If DSM wants to proceed, it will have 12 months after the completion of the updated NI 43-101 resource estimate and report to acquire the remaining 25% of the shares of Aurmont by paying $USD 40 per ounce for 25% of the revised measured and indicated resources and $USD 10 per ounce for 25% of the revised inferred resources, all as set out in the updated NI 43-101 report. DSM will also have a right of first refusal on the remaining 25% of the shares of Aurmont owned by Colt.
3. DSM will be the operator during Phase 2
The above terms are subject to a definitive agreement to be signed by both parties following due diligence by DSM. Due diligence is expected to be completed by February 28, 2015.