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Colossus Minerals Inc. Announces COOMIGASP Shareholder Approval of Agreements to Acquire 774 Hectares of Additional Ground Continguous to Serra Pelada

May 17, 2010

Toronto, Ontario - Colossus Minerals Inc. (TSX:CSI)(“Colossus” or “the Company”) is pleased to announce that the shareholders of its joint venture partner, COOMIGASP (Cooperativa de Mineração dos Garimpeiros de Serra Pelada), have approved the previously announced option agreement with Vale S.A. (“Vale Option Agreement”) to acquire a 100% interest to mine precious metals in a 700 hectare land package (“Area B”) contiguous to the existing 100 hectare Serra Pelada Project (“Area A”) currently being developed by Colossus and COOMIGASP.  In addition, the agreements between Colossus, through its Brazilian subsidiary (“Colossus Brazil”), and COOMIGASP (“CC Agreement”) covering the transfer of the Vale Option Agreement into Serra Pelada Companhia de Desenvolvimento Mineral (“SPC”), the Colossus/COOMIGASP joint venture company, and the transfer to SPC of an approximate 74‐hectare tenement currently owned 100% by COOMIGASP (“Area C”) also received shareholder approval (see press release dated March 30, 2010). 

As previously announced, the CC Agreement obligates Colossus to pay COOMIGASP $12 million Reais (approximately US$6.7 million) plus a fee of $300 Reais for each kilogram of gold, platinum, palladium or other platinum group elements sold from Area B (equivalent to US$5.23 per ounce) to cover all obligations of the Vale Option Agreement, and to pay COOMIGASP $1450 Reais for each kilo of gold, platinum, palladium or other platinum group elements produced and sold from Area C (equivalent to US$25.26 per ounce). The currency conversion rate used in this news release is $1.00 Real equals US $0.56.

Details of the Vale Option Agreement are as follows:

1)  A three year option agreement was signed to acquire a 100% interest in Area B to mine precious metals.
2)  COOMIGASP commits to a minimum exploration expenditure of US$5 million over three years on Area B.
3)  An estimate of the mineral reserves (proven + probable) (“Mineral Reserves”) under internationally accepted guidelines must be completed by the end of the 3 years in order to exercise the option.
4)  Colossus, through SPC, will pay US$35 per ounce of gold, platinum or palladium (the “fee”) based on the Mineral Reserves and 20% of the fee will be paid 30 days after exercising the option with the remaining 80% to be paid 90 days after the publication of the transfer of the mineral rights of Area B from Vale to COOMIGASP and subsequently to SPC.

Details of the CC Agreement are as follows:

1)  Colossus will pay COOMIGASP $12 million Reais (approximately US$6.7 million), of which $8 million Reais (approximately US$4.5 million) is for assignment of the Vale Option Agreement to SPC and $4 million Reais (approximately US$2.2 million) is for the acquisition of Area C.
2)  Colossus assumes all financial responsibilities of COOMIGASP under the Vale Option Agreement.
3)  Colossus will pay COOMIGASP $300 Reais for each kilogram of gold, platinum, palladium or other platinum group elements sold from Area B (equivalent to US$5.23 per ounce).
4)  Colossus will pay COOMIGASP $1450 Reais for each kilogram of gold, platinum, palladium or other platinum group elements produced and sold from Area C (equivalent to US$25.26 per ounce).

In all cases, funding required by SPC to fulfill the terms of the CC Agreement and the Vale Option Agreement commitments will be supplied by Colossus Brazil as an equity contribution to SPC such that the shareholding of SPC remains at 75% for Colossus and 25% for COOMIGASP.

“Colossus will announce in the near future plans for an exploration program on the newly acquired ground.  Also I would like to thank our joint venture partner for moving forward expeditiously in obtaining shareholder approval for all of the agreements”, stated Ari Sussman, CEO of Colossus.  “We are excited to get to work exploring the extension of the known deposit and searching for additional targets on the new ground.”  

About Colossus:

Colossus is a minerals development company focused on the Serra Pelada high‐grade gold‐platinum‐palladium project in Para State of Brazil. Between 1980 and 1986, Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage by 60 Minutes of this famous mining rush can be viewed at:  http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887.

Except for statements of historical fact relating to Colossus, certain statements in this press release constitute “forward‐looking information” within the meaning of the Securities Act (Ontario) or "forward‐looking statements" within the meaning of the United States Private Litigation Reform Act of 1995. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable.  Forward‐looking statements are frequently characterized by words such as “target”, “plan”, “expect”, “project”, “intend”, believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur.  Forward‐looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward‐looking statements.  The factors include but are not limited to risks related to the joint venture operation, actual results of exploration activities, the inherent risks involved in the exploration and development of mineral properties, changes in project parameters as plans continue to be refined, delays in obtaining government approvals, the uncertainties of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties inherent to conducting business in Brazil and the rest of Latin America, the availability of supplies, unexpected adverse climate conditions, the reliance on only a few key members of management, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s most recent Annual Information Form filed with Canadian provincial securities regulatory authorities and other regulatory filings which are posted on SEDAR at www.sedar.com.  Unless required by law, Colossus undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change.  The reader is cautioned not to place undue reliance on forward‐looking statements.

For further information, please contact:
Elina Chow, Public Relations Manager
Colossus Minerals Inc.
Tel: (416) 643‐7655
Web site: www.colossusminerals.com
Email: info@colossusminerals.com