Sandstorm reviewing its investment in cash-starved Colossus Minerals

colossus minerals dewatering 600

Colossus is an emerging mineral exploration and development company focused on Brazilian gold.

Colossus Minerals (TSX:CSI) ceased underground development of its Serra Pelada gold-platinum-palladium mine in Brazil saying it needs to raise approximately US$70 million to resume work.

The announcement cut the value of the company’s value by a third. It is now trading at 16 cents with 168.95 million shares outstanding.

The company needs the money for dewatering work. It also wants to commence underground definition drilling in connection with the preparation of a National Instrument 43-101 compliant resource due this month.

Without financing the company said it is uncertain that it will “remain an ongoing concern.”

“These circumstances indicate a material uncertainty which may cast significant doubt as to the ability of the Company to continue as a going concern. The Company, in conjunction with its key stakeholders, is continuing its efforts to raise short-term capital to partly address its working capital deficiency and pursue other strategic alternatives,” said the company in a news release.

Streaming company Sandstorm Metals & Energy (TSX-V:SND) is reviewing its investment in the company.

“Given that Colossus has material negative working capital, the Company will need additional funding in order to proceed with the strategy outlined by its board of directors. Sandstorm will be reviewing its investment in the Company for a partial or full impairment as there can be no assurance that adequate funding will be available for Colossus in the future,” said the company in a news release.

Colossus is a development-stage mining company. The Serra Pelada Mine is a joint venture between Colossus and COOMIGASP located in the State of Pará, Brazil.

CSI Chart

CSI data by YCharts

160 0
Latest Stories

MSHA honours Massey operations for safety achievements

The Mine Safety and Health Administration (MSHA) in the USA has selected the Green Valley Preparation Plant and two mines operated by the Aracoma Coal Co to receive Pacesetter Awards for outstanding safety achievements. Green Valley and Aracoma are operating units of Massey Energy Co. The awards to the Green Valley plant and Aracoma’s Alma and Hernshaw mines honour operations [...]

Eyes on Indian Underground

increasing demand for coal. Industry observers believe that India is poised to become a major market for mining equipment, even larger than China, and this opportunity has led several global mining companies to open up shop in the country at least four

SIGN UP FOR OUR DAILY NEWSLETTER

Bateman makes major acquisitions in mineral processing

As IM May is prepared for printing, with an article on developments in mineral processing, comes dramatic news from Bateman. The company has recently acquired the mining-process division of Intertech, with a strong market presence in the CIS. Even more significant, Bateman’s latest acquisition, announced as IM goes to press, is that of the Delkor [...]