Jan. 14, 2014, 11:51 AM
- Colossus Minerals (COLUF -25%), a former star of the junior mining sector, says it will seek creditor protection after failing to make a small interest payment due at the end of 2013.
- Colossus expects to receive short-term financing from noteholders and from Sandstorm Gold (SAND -2.6%) to stay afloat during the next six weeks, buying Colossus time to either sell itself or convert its debt into equity.
- If Colossus opts for a debt-for-equity swap, noteholders would own 51.5% of the stock, SAND would own 38.8%, lenders under a bridge loan would own 8%, and current shareholders would own just 1.7%.
Dec. 24, 2013, 10:27 AM
- Colossus Minerals (COLUF +23.5%), already on the brink of financial collapse, released a mineral resource estimate yesterday for its Serra Pelada project in Brazil that identified a miniscule 274K oz. of gold.
- Investors had figured the site contained millions of ounces and are hoping the 274K calculation is too low, since the geology of the deposit may not mesh well with resource reporting rules in Canada; many of the high-grade portions of the deposit did not get into the estimate.
Colossus is a Canada based exploration and development company. Our primary focus is to advance the Serra Pelada project, located in Para, Brazil, into production. Serra Pelada is host to one of the highest grade gold and platinum group metal deposits in the world.
Sector: Basic Materials
Industry: Electric Utilities