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Colossus Minerals (T.CSI) falls 40% on funding pitfall: Canadian market movers

Elizabeth Walters Elizabeth Walters, Stockhouse
0 Comments| December 6, 2013

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Here are the most active stocks on Friday mid-morning on the TSX and TSX Venture Exchange.

On Friday, the top TSX mover was Colossus Minerals Inc. (TSX: T.CSI, Stock Forum). It fell 40% and was trading at $0.15 on volume of 4.8 million shares.

Today, the exploration company provided an update on the status of the company's efforts to identify and secure funding for the balance of the expenses identified to commence production at its 75% owned Serra Pelada gold-platinum-palladium mine located in the State of Pará, Brazil.

In a press release dated November 14, 2013, the company indicated that delays related to dewatering had resulted in a delay in production until the second quarter of 2014. The delay in reaching initial production meant that additional financing would be required.

Following Nov. 14, 2013, the company prepared a revised forecast of the capital and operating expenditures required to get to initial production with the funds required to meet certain existing obligations of the company and estimated that it would be necessary to raise approximately US$70 million. Since then the company has consulted with key stakeholders to discuss potential sources and structures for financing the US$70 million as well as additional funding that is needed between commencement of production and positive cash flow from operations. After lengthy discussions it was agreed that, at this time, a different approach is required.

Accordingly, the board of directors has taken a decision that the company's strategy should be reviewed.

Bombardier Inc. (TSX: T.BBD.B, Stock Forum) was the second most active stock on the TSX. The stock was up 2.7% and trading at $4.725 on volume of 2.9 million.

Today, the transportation equipment manufacturer said it has signed a letter of intent to sell 30 of its Q400 NextGen aircraft to China's Nantong Tongzhou Bay Aviation Industry Co. Ltd. worth approximately US$995 million. The company is preparing to launch a commercial airline in China called Sutong Airlines and says plans to operate an all-Bombardier fleet of the Q400 airliners when it starts operations in 2015.

Newcastle Energy Corp. (TSX: V.NGY, Stock Forum) was the volume leader on the TSX Venture Exchange. It gained 33% and was trading at $0.02 on volume of 2.6 million.

The oil and gas company had no related news to explain the high volume in trading.

The second most active stock on the TSX Venture was Africa Hydrocarbons Inc. (TSX: V.NFK, Stock Forum) It rose 15.4% and was trading at $0.15 after 2.4 million shares changed hands.

On November 28, the oil and gas junior announced that it has applied to the TSXV for an extension of the expiry date of certain of its outstanding common share purchase warrants. The application seeks TSXV approval of the extension of the expiry date of the warrants to May 31, 2014.


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