GREY:STTYF - Post Discussion
Post by
MrC_ on Dec 06, 2013 11:08am
Email update from Sandstorm on Colossus
Sandstorm Metals & Energy Provides Update on Serra Pelada |
 |
| Vancouver, British Columbia | December 6, 2013 |
| |
Sandstorm Metals & Energy Ltd. (“Sandstorm”) (TSX-V: SND) announces a status update related to Colossus Minerals Inc. (“Colossus” or “the Company”) and their efforts to secure funding for the balance of the expenses required to commence production at the Serra Pelada Mine in Brazil (“Serra Pelada”).
In a press release dated November 14, 2013, Colossus announced that development delays at Serra Pelada had resulted in a change to the anticipated production start date at the mine and that additional capital would be needed. The management team at Colossus has estimated that US$70 million is required in order to meet the Company’s existing obligations and progress Serra Pelada to production.
At this time, the board of directors of Colossus has decided to cease underground development at Serra Pelada in order to reduce ongoing costs. The Company intends to continue with the dewatering program at the mine and commence underground definition drilling in connection with the preparation of a National Instrument 43-101 compliant resource estimate for Serra Pelada. Roscoe Postle Associates Inc. has been hired to complete the resource estimate which is expected by the end of December, 2013.
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. |
Be the first to comment on this post