Arias Makes Offer Colossus Minerals Inc. (TSX:CSI)(OTCQX:COLUF) (the "Company" or "Colossus") announced today that, subject to the receipt of regulatory approvals, it intends to enter into agreements with Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. (together, the "ARC Funds"), in relation to a two tranche financing (the "Financing") comprised of: (i) a senior secured convertible loan (the "Loan") in the aggregate principal amount of $4 million, and (ii) a private placement (the "Private Placement") of units (each, a "Unit") of the Company for targeted gross proceeds of approximately $21 million.
Completion of the Financing is conditional upon receipt of, among other things, all required regulatory approvals. The Company may not draw down on the Loan untilSandstorm Gold Ltd. ("Sandstorm") has entered into a binding term sheet relating to the Sandstorm Amendment Agreement (as defined below), as more particularly described under "Concessions to the Company". Completion of the Private Placement tranche of the Financing will be contingent upon, among other things, the implementation of the proposed amendments to the Notes contemplated by the Noteholders' Resolutions (as defined below), and execution of the Sandstorm Amendment Agreement. The implementation of the proposed amendments to the Notes contemplated by the Noteholders' Resolution and the proposed amendments to the Sandstorm Agreement (as defined below) as contained in the Sandstorm Amendment Agreement will be contingent upon each other.
To facilitate the Financing, certain holders (the "Noteholders") of the Company's outstanding gold-linked notes (the "Notes"), and Sandstorm, with whom the Company has a long-term precious metals purchase agreement with, are considering concessions that would defer and reduce certain of the Company's financial liabilities.