Renee
10 years ago
COLUF: Notice has been received that the above Debtors' Second Amended Proposal and Plan of Reorganization filed pursuant to the Business Corporations Act (Ontario, Canada), became effective on March 18, 2014. Pursuant to the Plan, existing Common Shares were consolidated on the basis of 200 to 1 and issued a new CUSIP. Members are further advised that that the effective date for the 1-200 Reverse-Split and CUSIP change was March 18, 2014. The New Post-Split, Post-Bankruptcy CUSIP will resume trading under symbol COLUD, effective May 5, 2014. Members are reminded of their obligations under FINRA Rule 2111 if they continue to engage in transactions in the above security after the effective date.
http://www.otcbb.com/asp/dailylist_detail.asp?d=05/02/2014&mkt_ctg=NON-OTCBB
howestreetbull
10 years ago
Colossus (ex-CSI.to) news: Brazil's parliament begins an official inquiry into fraud allegations at Serra Pelada
While Sandstorm manages to carve up the bones of what's left of Colossus Minerals (ex-CSI.to) with sushi-chef-like dexterity in order to dilute the holy fark out of everyone else and leave it with the pie, a more interesting development on the Serra Pelada fiasco is brewing in Brazil's National Congress. Over there the congress member for Para State, Arnaldo Jordy, has put together the necessary amount of congress member signatures (he needed 171, he got 191) in order to create an official parliamentary inquiry into the ever-louder cries of financial fraud around the mine project. That's kicking off soon, so expect fun and laughter headlines about this snafu all through 2014.
According to all reports it's a complete nest of vipers there, but the main bone of contention is the allegation that back in 2009 Colossus bribed the heads of its COOMIGASP partner at Serra Pelada (the local worker cooperative) to the tune of 50 million Reales (call it U$25m, averaging the forex then and now) in order to hand over an extra 24% of the project and make the ownership of the mine 75% CSI and 25% locals. Also, in the words of that Epoca link up there (translated), "The magazine had access to a report of the Board of Financial Activities Control (COAF), linked to the Ministry of Finance, which tracked unusual financial transactions between the cooperative and Colossus."
Canadian mining companies suspected of bungs to influential South Americans in exchange for mining prospects? Hoodathunkit, eh?
Ari Sussman is not available for comment.
http://incakolanews.blogspot.ca/
gharma
10 years ago
don't see how you can blame Fidelity for an exchange action
http://ih.advfn.com/p.php?pid=nmona&article=60658529&symbol=TSX:CSI
TSX Delisting Review - Colossus Minerals Inc. (Symbol: CSI CSI.NT CSI.WT.A CSI.WT.B)
TORONTO, Jan. 14, 2014 /CNW/ - DELISTING REVIEW Colossus Minerals Inc. (the "Company") - Further to TSX Bulletin #2014-0016 dated January 8, 2014, the common shares (Symbol: CSI), unsecured gold-linked notes (Symbol: CSI.NT) and common share purchase warrants of the Company (Symbol: CSI.WT.A and CSI.WT.B) (collectively, the "Securities"), which are being reviewed with respect to meeting the requirements for continued listing pursuant to the Remedial Review Process, will now be subject to the Expedited Review Process. The Securities are suspended from trading immediately.
benandemmiboo
11 years ago
(from stockhouse)
A devastating report by Joseph Fazzini of Dundee Capital Markets has seen the share price of Colossus Minerals (TSX:T.CSI, Stock Forum) tumble 11% down to $0.61, continuing a fall from $0.86 earlier in the month.
Already under pressure from technical challenges in its Serra Pelada project in Brazil, Fazzini held nothing back, stating “given the technical challenges encountered (brought on by water and challenging ground conditions), realizing [potential opportunities] now appears a less likely scenario for the shareholders of CSI.”
It continues, “In the case of CSI, we believe the options for raising new capital are few and expect that any future cash injections would likely be arranged under highly punitive terms. The prospect of adding further financial burden to what is already a leveraged capital structure in the context of a soft metal price environment has us concerned.”
“Given our lack of balance sheet comfort, management’s failure to budget and operational challenges that remain, we are downgrading CSI to a SELL (from Neutral) and reducing our target to $0.50 (from $0.80.”
catdaddyrt
11 years ago
the report I am sure has bad news in it
Print
Alert
Mon, Jul 15, 2013 08:56 - Colossus Minerals Inc. (COLUF: OTCQX International) released their Home Country News Release concerning Colossus Minerals Provides Development Update. To read the complete report, please visit: https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=107987.
sounds like delays
Toronto, Ontario, July 15, 2013 – Colossus Minerals Inc. (the “Company” or “Colossus”) (TSX: CSI) (OTCQX:COLUF) provides a development update for its 75% owned Serra Pelada gold-platinum-palladium Mine. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada (“COOMIGASP”) located in the State of Pará, Brazil.
HIGHLIGHTS
• Mining has progressed through the CMZ with both water and ground conditions being managed. However, recently some dewatering wells and pumps have not performed to design specifications. As a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the CMZ in a sustainable, effective and efficient manner.
• As a result, mining activity through the Central Mineralized Zone (“CMZ”) has been delayed and resources have been re-deployed to focus on infrastructure development and additional dewatering in order to keep the Company’s plans of achieving 1,000 tonnes per day (“tpd”) in the first quarter of 2014 intact. Infrastructure development in the red and gray siltstone is not impacted.
• The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.
• Management is currently evaluating the amount and timing of additional funds required to address the impact of the delay in the ramp-up and otherwise continue development and construction of the Serra Pelada Mine.
• Underground development continues in the red and gray siltstone at better than anticipated daily development rates with three headings (main decline, ventilation expansion and northern mineralization access) currently being developed. The Company will continue developing mine infrastructure and expects to end the year with five access drifts ready to enter the CMZ late in the fourth quarter to commence production at 500 tpd.
• The ventilation expansion project remains on schedule.
• The Company anticipates commissioning the mill commencing in the third quarter with surface stockpiles of approximately 3,000 tonnes collected during the bulk sample program.
investor15
11 years ago
The Colossus Is Twitching
Jun 21 2013, 15:21
by Itinerant
COLUF.PK, includes: SAND, STTYF.PK, VALE
Disclosure: I am long SAND, LGCUF.PK. (More...)
The greatest gold rush in South America took place in northern Brazil in the 1980s at a place called Serra Pelada. About 80,000 artisan miners, or garimpeiros, flocked to the area and dug a hole 400m by 300m across and 120m deep. Apparently about 2M ounces of gold were pulled from the earth during a 10 year period. Some got rich, most didn't. A highly entertaining documentary was made about this time and place which is free to view here (wait, read on and watch later). Brazilian mining giant Vale (VALE) held the formal title and explored the area until February 2007. Then COOMINGASP, a local cooperative company, was granted the exploration license for the area surrounding the historic pit.
(click to enlarge)
(photo taken from company web site)
Colossus Minerals (COLUF.PK) entered the scene by signing a joint venture agreement with COOMINGASP only a few months after the cooperative took control of Serra Pelada. Colossus Minerals is earning its share of the project by financing exploration and mine development capex. Furthermore, Colossus is making monthly payments of around $175,000 to COOMINGASP until start of production, after which COOMINGASP is entitled to a royalty of 1.3% to 2.1% of precious metal sales depending on production. Further exploration licenses were added over time covering the surrounding area with numerous interesting near mine and regional exploration targets already identified.
Reported grades from various drill core assays include some truly spectacular results in the double digits g/t for all three present precious metals - gold, platinum and palladium - over significant lengths. The geology of the area is complex. Gold-platinum-palladium mineralization has been traced to depths of up to 350m under the southern end of the historic pit and remains open along strike. Colossus is currently developing an underground mine to access what has been termed the Central Mineralized Zone (CMZ). Difficult ground conditions in combination with ground water had been a concern but turned out to be better than expected allowing for ongoing optimization of intended mining methods. Additional mineralization has been encountered during underground exploration from the decline suggesting a lower grade halo around the CMZ. A bulk sample has been extracted and will be processed on site as soon as the plant is functional. The technical challenges of building this mine are not to be underestimated, but so far construction has been executed with great precision.
Gold is presently under a great deal of pressure and the spot price has been correcting for over a year and a half. The present spot price of $1,300 seems a long way from the tops of $1,900+ and gold investor sentiment is shot to pieces. Platinum and palladium are also precious metals and attract increasing investment interest. Additionally, these two metals also have industrial applications especially in the car industry. Moreover, almost 80% of world supply of platinum and palladium is produced in South African mines. These mines are facing some serious challenges as is evidenced by numerous news reports during past months. Analysts such as Peter Hug of kitco.com have become very bullish on platinum and palladium recently based on the assumption of an upcoming supply squeeze. We view the platinum and palladium concentrate to be produced at Serra Pelada as a very attractive hedge against the gold correction turning into a proper bear market.
(click to enlarge)
An unusual decision was taken by the company to develop this mine without prior preparation of a NI 43-101 compliant reserve statement. The nature of the mineralization at Serra Pelada creates significant uncertainties with reporting to this standard and release of a NI 43-101 report has been postponed to later this year when sufficiently closely spaced drill data from underground exploration will be available, and results from the bulk sample can be incorporated. For potential investors this represents an additional risk. However, it did not stop Sandstorm Gold (SAND) to participate in the financing of the mine by providing $60M of upfront cash toward mine development in exchange for a streaming agreement that will allow them to purchase 15% of the gold production for $400 per ounce, and 35% of the platinum for $200 per ounce. Sibling company Sandstorm Metals & Energy (STTYF.PK) paid $15M upfront in exchange for 35% of the palladium production at $100 per ounce. It can be assumed that the Sandstorms performed significant due diligence before committing to this so-called streaming arrangement which could also be taken as some re-assurance by interested investors. Colossus has the right to buy back half of the precious metal stream until April 1, 2015, at a total cost of $58.5M to the two Sandstorms.
Colossus Minerals have been very forthcoming in reporting on mine development and has been releasing detailed monthly updates. The latest instalment on June 18 made for very interesting and encouraging reading once again. Construction is 85% complete and the company confirmed that the project is still on track for first production at an initial rate of 250 tpd in the third quarter this year. Production is scheduled to ramp up to 1000 tpd by Q1 2014. The decline has reached the CMZ and 2,500 tonnes of material have already been stockpiled on the ROM pad. Construction of the plant is on track for commissioning in the third quarter. The plant will process gold first, followed by PGM flotation a year later in Q3/2014. Serra Pelada is fully licensed and well serviced with roads, water and power and also has access to skilled local labor.
(click to enlarge)
Brazil is a mining friendly jurisdiction with a modern mining code, welcoming to foreign investment and a stable political and fiscal system. It's the sixth-largest economy world-wide and the undisputed economic power house in South America. Inflation has been high and increasing which warrants close monitoring. There are a number of operating gold mines in Brazil including the Aurizona mine by Luna Gold (LGCUF.PK), several mines operated by Yamana Gold (AUY) or operations by the local mining giant Vale.
Colossus is a development company. The company has gone through a speculative exploration phase during which the share price has soared to $9 and above. Such exuberance is typical for exploration companies with promising projects, and it is often followed by a drop when reality settles in with the concrete necessities of financing and mine development. Brent Cook of explorationinsights.com calls the bottom in the share price that is often associated with this development phase the "orphan period." This is exactly where we find Colossus Minerals at the moment. Consider the diagram below for an illustration of where Colossus Minerals may be heading if it managed to bring the Serra Pelada mine into production.
(click to enlarge)
(taken from explorationinsights.com)
Colossus Minerals presently has a market capitalization of $138M with 125M outstanding shares (139M fully diluted) trading at multi-year lows of $1.29 at the time of writing. Institutions own about 62% of the company and insiders about 13% - there has been some heavy insider buying very recently. The company just raised $28.75M in a bought deal which should be sufficient to get to production with some contingency to spare. The shares issued in this offering are not yet considered on Yahoo.com or other trading information platforms. Furthermore, the company has $75M worth of unsecured notes trading on the Toronto stock exchange under the ticker CSI.NT maturing December 2016. Each note has a face value of $1,000 and has 60 warrants with an exercise price of $8.50 each attached to it. Interest depends on the gold price and varies between 6% and 13%. These notes are currently trading at just under C$70.00.
(click to enlarge)
The share price has been locked in a downtrend since April 2011 as evidenced by the weekly chart above. There are various weak support levels below the present share price, but from a technical perspective the trend might continue and test strong support at $0.34 later in the year. From a chart perspective this would be a healthy move since it would fill a few gaps that have remained open from 2009.
Finishing up we would like to present our present investment thesis for Colossus Minerals. This stock represents a very high risk/reward opportunity with the company presently in a very vulnerable position. The project is a high risk undertaking and even though execution has been managed in an exemplary manner there are still many risks that could manifest themselves before the mine will go into production and a NI 43-101 reserve will be presented. Investors interested in this company need a very high risk tolerance, but looking at the potential of this project we believe that rewards could be handsome. Catalysts to turn around the downtrend and put an end to the orphan phase are coming up later in the year giving interested parties ample time to research and monitor Colossus Minerals over the coming weeks and months.
http://seekingalpha.com/article/1515172-the-colossus-is-twitching?source=email_authors_alerts&ifp=0
investor15
11 years ago
Expert Analysis
Colossus Minerals Inc.
theaureport
http://www.theaureport.com/pub/co/597#quote
The Gold Report Interview with Peter Krauth (3/27/13) "I like Colossus Minerals Inc., a developing precious metals miner. Its flagship project, Serra Pelada in Brazil, is fully permitted and has environmental, installation and mining licenses going back to 2010. The mine is under construction, with first production planned for early H2/13. It has done all kinds of metallurgical testing and expects very good recoveries. The company has come across some extremely high-grade intercepts for gold, platinum and palladium. Some of the high-grade intercepts have been 4,600 g/t gold over admittedly short intercepts, about 2–2.5m sections, 1,600 g/t platinum and 1,700 g/t palladium. Its margins are likely to be extremely wide, so it should be a very profitable producer. Some of the grades at Serra Pelada are among the highest on record. The project has drilled 100,000m to date, and a lot of exploration upside remains. . .
"[Colossus] has a $75M contingency for construction and working capital. It sold some of its production in advance to Sandstorm Gold Ltd. and Sandstorm Metals & Energy Ltd., but it has the right to repurchase half of those commitments. Platinum and palladium production will be relatively important, in addition to gold. This makes it an interesting way to play the PGM space. Investors can be part of a company that is very close to production and should have attractive profit margins. . .Colossus would be a trophy piece for a miner that wanted to own potentially large, high-grade reserves in a good, relatively safe jurisdiction." More >
Morning Coffee (3/12/13) "Shares of Colossus Minerals surged as traders anticipated positive updates from the company?s Serra Pelada gold/platinum mine in Brazil. . .mining operations remain on track to start initial production early in the second half of 2013 at an initial rate of 250 t/d and continue the ramp up phase throughout the remainder of 2013 to 500 t/d. . .the company expects to achieve 1,000 t/d of production by the end of the first quarter of 2014. . .the bulls get giddy like school girls when they look at cash costs, capital intensity and eye popping drill holes."
Morning Coffee (3/1/13) "Colossus Minerals Inc. announced further drill results from its Serra Pelada project in Brazil. . .[Hole SPD-182 returned] 3.4m grading 13.28 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium. . .highlights from the underground include Hole SPUD-018, which intercepted 0.8m grading 23.07 g/t gold and 3.6m grading 24.37 g/t gold, 0.28 g/t platinum and 0.88 g/t palladium. Overall, the results continue to delineate and extend the Central Mineralized Zone mineralization, while demonstrating localized increases in widths in certain areas."
Morning Coffee (2/11/13) "Colossus Minerals Inc. provided investors with a positive update surrounding progress at its Serra Pelada mine in Brazil: The company commented that it remains on track to start initial production early in H2/13 at an initial rate of 250 mtpd and continue the ramp up phase throughout the remainder of 2013 to 500 mtpd. . . .Colossus also noted that underground development is progressing well with a number of infrastructure projects necessary to support full-scale mining now complete or well underway."
George Albino, GMP Securities (2/8/13) "At Colossus Minerals Inc.'s Serra Pelada, we are pleased to see development progressing on track (and in some cases, ahead of schedule). With completion of the bulk sample by the end of the quarter, an initial resource/reserve estimate expected in early Q2/13, ongoing development efforts and, of course, continuing exploration updates, H1/13 should prove to be an eventful period for the company; we reiterate our Buy rating and CA$11.50 target."
http://www.theaureport.com/pub/co/597#quote
investor15
11 years ago
Precious Metals the Antidote to Fiat Currency Threat:
International Resource Specialist Peter Krauth
Source: Brian Sylvester of The Gold Report (3/27/13)
TGR: You recently wrote about the coming global shortage of palladium and the likely rise in the palladium price. Investors have heard similar refrains from experts relative to rare earth elements, lithium and even some base metals. Those commodities have witnessed only what one might call sporadic price gains. Are you "crying wolf" when it comes to palladium?
PK: The fundamentals for palladium's supply-demand profile are very solid. On the demand side, two-thirds end up in vehicles, mostly for catalytic converters. Car sales are growing very quickly. In 2011, 77M vehicles were sold worldwide; in 2012, 81M. This year, the forecast is to reach 85M and the 2018 estimate is 104M. A lot of that growth will happen in China, which also has a serious pollution problem. China has been increasing its emission standards as its air becomes relatively unbreathable.
On the supply side, Russia accounts for 44% of palladium production; South Africa for 38%.
South Africa has serious labor disruptions. In August 2012, miners at Lonmin Plc's (LMI:LSE) Marikana mine went on strike. Clashes between strikers and the police resulted in 46 deaths. Protests and strikes have multiplied since then. In January, Anglo American Plc (AAUK:NASDAQ) decided to close and sell off several of its platinum mines. Labor problems and production costs have just become overbearing. The mines are not profitable anymore. That does not help supply.
Ore grades from Russia have been falling quickly. Output from Norilsk, the world's largest palladium producer, is declining. Russia also sells palladium into the physical market from Gokhran, its state repository. In 2010, as much as 1 Moz of the physical palladium—representing 15% of the global supply—came from Gokhran. In 2011, that dropped to 775 Koz and last year to 250 Koz. This year, Johnson Matthey forecast Gokhran will supply only 150 Koz. In four years, supply from Gokhran will have dropped from 15% of the global supply to only 2%. Some insiders say there will be no supply from Gokhran in 2014.
TGR: Are resource equities the best way to play palladium?
PK: They are. Palladium's demand outlook is solid, and Russia and South Africa—source of 80% of the supply—will have a difficult time keeping up with demand. As a result, palladium prices will continue climbing. That will attract investors to things like palladium ETFs. As those ETFs use the metal as backing, it will drive up physical demand further.
The equities provide leverage to the palladium price. If companies can mine palladium at a relatively low cost, they can generate healthy profit margins. That is how investors should play this trend.
TGR: There are few platinum group metals (PGM) plays out there. Can you give us one or two names?
PK: I like Colossus Minerals Inc. (CSI:TSX; COLUF:OTCQX), a developing precious metals miner. Its flagship project, Serra Pelada in Brazil, is fully permitted and has environmental, installation and mining licenses going back to 2010. The mine is under construction, with first production planned for early H2/13. It has done all kinds of metallurgical testing and expects very good recoveries.
The company has come across some extremely high-grade intercepts for gold, platinum and palladium. Some of the high-grade intercepts have been 4,600 grams per ton (4,600 g/t) gold over admittedly short intercepts, about 2–2.5 meter (2–2.5m) sections, 1,600 g/t platinum and 1,700 g/t palladium. Its margins are likely to be extremely wide, so it should be a very profitable producer. Some of the grades at Serra Pelada are among the highest on record. The project has drilled 100,000m to date, and a lot of exploration upside remains.
TGR: For a long time, a group of workers called the Cooperativa de Mineração dos Garimpeiros de Serra Pelada (COOMIGASP) held a percentage of Serra Pelada. Does it still own a percentage?
PK: Yes, that group still owns 25% of Serra Pelada.
TGR: Is Colossus likely to try to buy them out?
PK: I think that could be part of its long-term plan.
TGR: Is Colossus on target for production in H2/13?
PK: Yes. It has a $75M contingency for construction and working capital. It sold some of its production in advance to Sandstorm Gold Ltd. (SSL:TSX.V) and Sandstorm Metals & Energy Ltd. (SND:TSX.V), but it has the right to repurchase half of those commitments.
Platinum and palladium production will be relatively important, in addition to gold. This makes it an interesting way to play the PGM space. Investors can be part of a company that is very close to production and should have attractive profit margins.
TGR: With its margins and its unusual gold-PGM project, is this a takeover target?
PK: Yes. Imminent producers inevitably become targets because they are irresistible in terms of adding to production and reserves. Colossus would be a trophy piece for a miner that wanted to own potentially large, high-grade reserves in a good, relatively safe jurisdiction.
(Continued at link below)
http://www.theaureport.com/pub/na/15109
gsfl
12 years ago
Colossus and Sandstorm Agree to a US$75 Million Long-Term Precious Metal Sale Transaction
September 19, 2012
TORONTO, ONTARIO--(Marketwire - Sept. 19, 2012) - Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) is pleased to announce that it has entered into an agreement with Sandstorm Gold Ltd. ("Sandstorm") (NYSE MKT:SAND)(TSX VENTURE:SSL) to sell refined precious metals in an amount equivalent to a portion of the life-of-mine payable platinum, palladium and gold produced from Colossus' 75% owned Serra Pelada Project. Colossus will receive an upfront deposit of US$75 million, as well as ongoing payments for each ounce of metal delivered under the agreement.
Transaction Highlights
Attractive source of capital: The transaction provides a non-dilutive source of capital by selling 35% of payable platinum and palladium production and a small portion (1.5%) of payable gold production. Colossus will deliver all metals due under this agreement from its 75% of the Serra Pelada project.
Fully funded for construction and beyond: The US$75 million is in excess of the remaining funding required for the construction and ramp up of production at Serra Pelada. The excess funds provide a construction contingency and may also be used to advance the Company's regional exploration program or other value-enhancing activities.
Third party validation: Partnering with Colossus demonstrates Sandstorm's confidence in Serra Pelada and its potential to deliver low cost production. Sandstorm completed significant due diligence on the property including a review of the geological and metallurgical work being used as the basis for construction of the mine and the substantial exploration potential that remains at Serra Pelada.
Maintain significant commodity exposure: Under the terms of the Transaction Colossus and its shareholders maintain significant exposure to all precious metals produced from Serra Pelada, particularly gold.
Claudio Mancuso, President & CEO of Colossus commented, "This transaction is an endorsement of the quality and potential of Serra Pelada and the emergence of Colossus as a high-grade near-term gold producer. The transaction provides a favourable, non-dilutive source of funding and the necessary capital to ensure the successful completion of construction. Development of Serra Pelada remains on schedule and we look forward to having Sandstorm as a partner as we advance the Serra Pelada project towards initial production in mid-2013."
Nolan Watson, President & CEO of Sandstorm commented, "This transaction represents Sandstorm's largest investment to date. Sandstorm is proud to become a partner with Colossus, a quality high-grade near-term producer, in completing the construction of Serra Pelada. Colossus has assembled an excellent operations team and has placed itself in a strong position to produce in 2013."
Details of the Agreement
Sandstorm will provide a US$75 million deposit to Colossus. In return, Colossus will deliver to Sandstorm life-of-mine payable metal equal to 35% of the platinum, 35% of the palladium and 1.5% of the gold from Serra Pelada. The percentages of payable metals to be sold by Colossus to Sandstorm are calculated based on 100% of payable metals derived from production at Serra Pelada; however, Colossus will deliver all metals due under this agreement from its 75% of the Serra Pelada project.
Ongoing payment terms: In addition to the upfront deposit, Sandstorm will also pay to Colossus a purchase price equal to the lesser of US$200 per ounce of platinum, US$100 per ounce of palladium and US$400 per ounce of gold (subject to inflation adjustments of 1% per year) and the prevailing market price. The balance of production from Colossus' 75% of the Serra Pelada project, as well as COOMIGASP's 25% portion of production, will be sold at prevailing market prices.
Buy-back option: Colossus has the right to purchase up to 50% of Sandstorm's obligation to purchase metals for US$48.75 million. Colossus may exercise this option either as a single purchase or in 10% increments until April 1, 2015.
Other terms and conditions: Colossus has guaranteed certain minimum annual deliveries for the initial 10 year period, commencing in 2013. In addition, Colossus has agreed to refund a pro-rata portion of the upfront deposit in the event that Serra Pelada does not achieve a completion test within 48 months of funding. Colossus' obligations under the agreement will be secured by Colossus' interest in its principal subsidiaries as well as by certain assets of Colossus Mineração Ltda. ("Colossus Brazil"). The amount so secured will be limited to $10 million until Colossus' outstanding senior unsecured gold linked notes have been repaid. In addition, Colossus has guaranteed the performance by Colossus Brazil of its obligations under the agreement with Sandstorm. Future royalty arrangements or similar metal sales agreements by Colossus or its subsidiaries involving Serra Pelada are subject to rights of first refusal or consent rights in favour of Sandstorm. The agreement also contains other terms and conditions, including customary representations, warranties, covenants and events of default. The initial term of the contract is 40 years, subject to successive 10-year renewals at the discretion of Sandstorm. Funding of the deposit by Sandstorm is expected to occur today.
Colossus' financial advisor for this transaction was GMP Securities L.P. and its legal advisor was Davies Ward Phillips & Vineberg LLP.
About Colossus:
Colossus is a development-stage mining company focused on bringing its Serra Pelada project into production. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, Brazil, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage of this famous mining rush by 60 Minutes can be viewed by following the link below. Colossus Minerals shares, warrants and notes trade on the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its Common Shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada
gsfl
12 years ago
Colossus Minerals Provides Operations and Development Update for Serra Pelada
TORONTO, ONTARIO--(Marketwire - April 2, 2012) - Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) is pleased to provide an update on the development activities at its 75% owned Serra Pelada Gold-Platinum-Palladium Project. Colossus commenced construction of infrastructure in September, 2010 following receipt of its permits from various Brazilian federal and state authorities in May, 2010. The Serra Pelada Project is a Colossus-COOMIGASP Joint Venture located in Pará, Brazil.
Development Highlights
The following operational and development milestones have been reached:
950 metres of decline development completed; total advance of approximately 1,100 metres including secondary development.
350 metres of development left to reach main mineralization - on track for second half of 2012.
Bulk sample on schedule to be extracted in second half of 2012.
Ground conditions encountered thus far have been better than expected.
Long lead-time items for the processing plant have been ordered and are expected on site during the third quarter of 2012.
15 well dewatering system commissioned in the first quarter of 2012 and progressing smoothly.
Initial NI 43-101 resource and reserve estimate outlining 12 months of mineral reserves on track for first quarter of 2013.
Initial production expected mid-2013.
Claudio Mancuso, President & Chief Executive Officer commented, "We are now a year and a half into construction, and development of the Serra Pelada Project remains on schedule. We are getting closer to extracting a bulk sample and progressing well towards our goal of production in the second half of 2013 with a number of exciting milestones in 2012." Mr. Mancuso further commented, "With $103 million in the bank at the end of 2011 our capital and exploration budgets remain fully funded to production."
Serra Pelada - Construction and Development Update
The Company has now completed approximately 950 metres of decline development to a vertical depth of approximately 135 metres. Primary and secondary development totals 1,100 metres. The Company needs to complete an additional 350 metres of development, 125 metres in the main decline and 225 metres of secondary development, to access the mineralization. The Company remains on track to extract a bulk sample in the second half of 2012 and will provide additional information as it approaches the mineralization and begins to prepare areas for extraction. Over the next 200 metres of advance in the main decline, the Company will establish multiple secondary development headings in order to provide sufficient access for the first full year of production. To provide access for production beyond 2013, development of the main decline will continue throughout 2012 and is expected to be substantially complete by the end of this year.
Development to date has been as expected and the ground conditions in the red siltstone have been predictable. Conventional ground control techniques (scaling, rock bolting, screening and shotcrete application) have been sufficient to ensure a safe mining environment. As the decline moves into the next phase of development and towards the bulk sample in the second half of the year, management will continue to focus on mitigating any risks in development with an increase in the number of rock strength tests as well as the addition of ground movement monitors that will allow the Company to be proactive if the ground conditions should change.
Procurement of mining equipment is 95% complete with 80% of the equipment already on site. Of the 24 pieces of mobile equipment needed for production, 19 are now on site and in operation, four have been ordered with anticipated delivery in the second quarter of 2012, and one remains to be purchased. Of note, is the late February 2012 delivery of a dual boom Sandvik LHD 307, which commenced operation in March 2012 and has helped accelerate the rate of underground decline development. Electrical work progressed during the fourth quarter of 2011 as the site transformer arrived and was installed. Four generators arrived on site early in 2012 and construction of infrastructure necessary to distribute power to new installations on site is proceeding well.
In the fourth quarter of 2011, the first underground drill bay was established in the development decline at Serra Pelada. The drill bay location was designed to be multi-purposed. It has served to conduct geotechnical holes ahead of the advancing decline so that ground conditions can be anticipated. Additionally, two delineation holes have been drilled from this location to date. Within the next 100 metres of advance in the main decline, two additional drill bays will be established which will be used to conduct definition and delineation drilling ahead of the bulk sampling program. Management expects to commission the second underground drill during the second quarter of 2012. This drilling will form the basis for the initial NI 43-101 resource and reserve estimation, which remains on schedule for the first quarter of 2013.
The Company continues to augment its development team. To this end, Colossus is pleased to welcome Lyle Pritchard as General Manager, Serra Pelada. A highly-motivated and safety-minded mine operations manager with practical and progressive experience in all aspects of management and underground mining methods, Mr. Pritchard brings a wealth of experience from his years at Barrick's Bulyanhulu Mine in Tanzania and more recently at Goldcorp's Marlin Mine in Guatemala and AuRico's El Cubo Mine in Mexico. Recognized as being an experienced operator in challenging underground mining conditions, he is a strong addition to the operating team.
In addition, the Company continues to work closely with P&K Projetos e Consultoria LTDA who was engaged in the fourth quarter of 2011 to develop the detailed underground mining plan for Serra Pelada. Pedro Pino Véliz, Civil Mining Engineer (P.E.), Eng. Dr. (IT) SME, who has more than 35 years of experience in mining operations and executive management, heads up P&K's 315 person team headquartered in Rio de Janeiro. In operation since 1992, P&K has extensive experience serving its Brazilian and international clientele with rock mechanics, rock characterization, underground stability and hydrological studies. This has included detailed design of tunnels and stations, methods of excavation and specifications for support methods in the expansion of the Rio de Janeiro subway system in preparation for the 2014 World Cup and 2016 Olympic Games. P&K has also assisted a number of gold and coal producers with design of development and infrastructure in varying ground conditions; including decalcified sandstones and siltstones which are the prominent lithologies at Serra Pelada.
Commissioning of the 15 well dewatering system commenced in the first quarter of 2012. The Company remains on schedule to complete dewatering to depths sufficient for mining operations ahead of production in 2013.
Engineering for the first phase, gravity processing plant has commenced and construction is anticipated to commence imminently and to be complete early in the first quarter of 2013. Orders for long lead-time items for the mill, including the intensive leach reactors, electro-winning cells, the gravity concentrators and the ore scrubber have been placed and are expected to be delivered during the third quarter of 2012.
The Company is pleased to provide photographs of the development activities at Serra Pelada. Photographs can be accessed via following link: http://media3.marketwire.com/docs/CSI_Construction_Update_April_Final.pdf.
April 2012 Pictorial Development Update
Going forward the Company intends to provide monthly photographs of the construction to those that have subscribed to the Company's voluntary e-mail list. Those interested in receiving this monthly photographic update can subscribe to the mailing list by visiting the Company's website and filling in the contact us details. A confirmation email will be sent which needs to be replied to before news distribution will commence.
About Colossus:
Colossus is a development-stage mining company focused on bringing its Serra Pelada project into production. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, Brazil, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage of this famous mining rush by 60 Minutes can be viewed by following the link below. Colossus common shares, warrants and notes trade on the Toronto Stock Exchange (TSX) under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its common shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada.
http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887
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