Colossus Minerals Inc. Announces Socio-Economic Agreement With The Municipality of Curionópolis
Toronto, Ontario, May 13, 2010 - Colossus Minerals Inc. (TSX:CSI)(“Colossus” or “the Company”) is pleased to announce that the Company has reached an agreement (“the Agreement”) with the Municipality of Curionópolis (“Curionópolis”), Para State, Brazil, to provide funding for health, education, urban planning and infrastructure development. The Agreement satisfies certain conditions set out in the Preliminary Environmental License for the Serra Pelada Project.
Details of the Agreement with Curionopolis are as follows:
A total of $8.9 million Reais (approximately US$5.0 million) to be paid in installments at certain dates being:
25% or $2.2 million Reais (US$1.3 million) at signing of this Agreement
20% or $1.8 million Reais (US$1.0 million) at start of mine development
30% or $2.7 million Reais (US$1.5 million) January 2011
25% or $2.2 million Reais (US$1.2 million) January 2012
The funding will be used for health, education, urban planning and infrastructure development in the communities of Curionópolis and Serra Pelada according to the schedule of priorities defined by the Municipality of Curionópolis. This is intended to prepare the region for and to mitigate the impact of the development of the Serra Pelada project. The currency conversion rate used in this news release is $1.00 Real equals US$0.56 (May 12, 2010).
“This Agreement is an important part of our commitment to maintaining good corporate social responsibility with the communities in the area of Serra Pelada and the members of our joint venture partner, Coomigasp”, stated Ari Sussman, CEO of Colossus “I would personally like to thank Mayor Wenderson Chamon for his dedication to improving the quality of living standards for his municipality and his unwavering support for the Serra Pelada project.”
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.
CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING INFORMATION
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