Colt Resources Inc. (DB:P01) announced that it has entered into an equity line facility of private placement of common shares for gross proceeds of CAD 30,000,000 with new investor, CITIC/GEM Fund I, L.P., a fund co-managed by Global Emerging Markets Limited and CITIC Private Equity Funds Management Co., Ltd. on June 22, 2015. The company has signed an agreement with the investors. The facility is for a period of 36 months.

The company will control the timing and maximum amount of any draw down, and has the right, not the obligation, to draw down on the commitment amount. The maximum amount of a draw down will be the lesser of 1,000% of the average daily trading volume during the 15 trading days immediately preceding the date of a draw down or the remaining portion of the commitment amount. The common shares issued under the agreement will be subject to statutory resale restrictions, but the investor will receive freely transferable and unrestricted common shares through a share lending facility which will be provided by company's current shareholders.

The company has also agreed to pay in connection with the agreement up to 2% of the commitment amount in fee to the investor. The subscription price for the common shares issued under the agreement will be equal to 90% of the average closing price of the 15 trading days immediately preceding the date of a draw down, which subscription price may not be lower than the floor price determined by colt for such draw down and the discounted market price. The agreement remains subject to the approval of the TSV Venture Exchange.