beim explorer76 geklaut: Seeking Alpha's Meinung Colt has attracted Sunrise Resources which will spend cash and issue shares to acquire Colt’s 67% stake in the Extra High exploration property. This is unexpected but could be a good thing as the company has ignored the property for about six years now. The investment thesis hasn’t changed and I hope the company has some kind of ‘plan of action’ for 2015.
Colt Resources (OTCQX:COLTF) has announced it has signed an agreement with Sunrise Resources whereby the latter can earn a 67% stake in the Extra High property in British Columbia. Colt currently owns 67% of the project (and will be diluted down to zero if Sunrise fulfills its obligations) with private partner High 5 Ventures owning the remaining 33% stake in the project which is located near Kamloops.
To acquire Colt's 67% stake, Sunrise has to issue 9 million shares and incur $650,000 in exploration expenditures within three years of signing the joint venture agreement. Colt can nominate a director to the board of directors of Sunrise as long as it retains an equity stake of at least 10%, and has the right to maintain its ownership at the same level. This is quite an interesting agreement and it looks like Colt just wanted to dump the project as Colt hasn't done any exploration work on the property since it acquired an additional 33% stake for $250,000 in 2008. Nevada's mandatory exploration expenditures are quite low and if Colt would get issued the full amount of 9M shares, it would be able to book an addition of $300,000 worth of Nevada shares on its balance sheet.
In my original article I wasn't too keen on Colt Resources as I was hating the excessive management salaries. The company also hasn't done a lot of work on its Portuguese properties during the summer and Colt's share price is currently trading 71% lower compared to the share price when the original PRO article was published. The CEO's salary has come down from $465,000 to $300,000 in the previous financial year but this is still too much for an E-level employee of an exploration-stage company. I continue to avoid Colt Resources for now.
ZUm Gehalt 2014 ist noch zu sagen : 120.000 Euro -also vollkommen am unteren Rand der CEO`s
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