Colossus Minerals Provides Update on Financing

Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) reported the receipt of a proposal from a group of holders of Convertible Gold Linked Notes and Sandstorm Gold Limited, offering the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization.

As quoted in the press release:

On December 31, 2013 the Company received a proposal from these noteholders and Sandstorm Gold Limited (“Sandstorm”) which, if implemented would offer the Company the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization. However, existing holders of common shares would experience massive dilution to the point where they would, in aggregate, hold approximately 1.7% of the outstanding common shares after giving effect to the terms of the proposal.

The proposal is being considered by the Company’s directors and discussions are continuing.

Click here to read the Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) press release
Click here to see the Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) profile.