Notice of Intention Under Bankruptcy and Insolvency Act Filed by Colossus Minerals

The Board of Directors of Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) have approved a proposal from certain holders of Notes and Sandstorm Gold Ltd., restructuring Colossus for interim debtor-in-possession financing during a six week sale and investment solicitation process and a restructuring of Colossus’ capital structure through conversion of debt into equity.

As quoted in the press release:

The Board of Directors has also approved today the filing by the Company of a notice of intention (the “NOI”) to make a proposal under the Bankruptcy and Insolvency Act (Canada) (the “BIA”), which is intended to enable Colossus to pursue the Sale Process and Restructuring with the benefit of creditor protection and under Court-supervision. Duff & Phelps Canada Restructuring Inc. (“Duff & Phelps”) was named as the proposal trustee in the NOI.
In the coming days the Company intends to seek an order from the Court (i) approving the terms of a DIP Financing credit facility (the “DIP Credit Facility”) and (ii) approving the terms of the Sale Process, which is to be administered by the Company and its financial advisor and overseen by Duff & Phelps.