Colossus Minerals Announces Earning a 75% Interest in Serra Pelada Project
Toronto, Ontario, November 23, 2009 – Colossus Minerals Inc. (“Colossus” or “the Company”) (TSX:CSI) is pleased to announce that, pursuant to the partnership agreement dated July 16, 2007 between Colossus and its joint venture partner, Coomigasp, as amended on December 17, 2007, April 10, 2008, and September 4, 2009, Colossus has completed its earn-in for a 75% interest in the joint venture company which operates the Serra Pelada Project. This represents an increase from a previous 51% ownership interest in the project and was obtained by spending an additional $R12.0 million. Total expenditures on exploration and development for the 75% interest now amount to R$18.0 million (approximately US$10.6 million). The 75% ownership interest in the joint venture company was accepted by regulatory authorities in Brazil on November 17, 2009 with an effective date of September 24, 2009, being the date when the registration application was filed.
"Our aggressive exploration and development timeline has resulted in the Company completing its 75% earn-in commitment in an expedited time frame," commented Ari Sussman, CEO. "We intend to continue on a similar path in developing the Serra Pelada Project."
The Company would also like to reminder holders of the unexercised common share purchase warrants (the "Warrants") issued in connection with Colossus' March 2009 public offering, of the Company's decision to accelerate the expiry date of such Warrants from 4:00 p.m. (Toronto time) on March 10, 2011 to 4:00 p.m. (Toronto time) on November 27, 2009, in accordance with their terms. Each Warrant entitles the holder thereof to acquire one common share of the Company ("Common Share") at CDN$2.70.
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 the Corporation, certain information contained herein constitutes “forward-looking statements” within the meaning of the United States Private Litigation Reform Act of 1995 or “forward-looking information” within the meaning of the Securities Act (Ontario). 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 the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility 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, and other factors. The Corporation 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