Colossus Minerals Announces an Amendment to the Partnership Agreement with Coomigasp
Press Release
Source: Colossus Minerals Inc.
On 8:30 am EST, Thursday November 12, 2009
TORONTO, ONTARIO--(Marketwire - 11/12/09) - Colossus Minerals Inc. ("Colossus" or "the Company")(TSX:CSI - News) is pleased to announce that it has amended its agreement ("Amended Agreement") with its joint venture partner, Coomigasp, for the Serra Pelada Project located in Para State, Brazil. The Amended Agreement was executed following ratification via a series of open meetings of the members of Coomigasp and a vote passed by the members of Coomigasp on November 8, 2009.
Pursuant to the original agreement between Colossus and Coomigasp dated July 16, 2007, Colossus has the right to earn up to a 75% interest in the joint venture company, which operate the Serra Pelada Project, by spending R $18.0 million (US $10.6 million) on exploration and development of the Serra Pelada Project. In addition to earn its interest, Colossus is required to make staged premium payments to Coomigasp based on the mineable gold reserve proven by exploration work accepted by the Brazilian National Department of Mines in the Plano de Aproveitamento Economico.
Pursuant to the terms of the Amended Agreement, Colossus will be required to make a monthly payment to Coomigasp of R$350,000 (US$206,000) and will finance Coomigasp's portion of development costs until production commences. Reimbursement of funds advanced on Coomigasp's behalf by Colossus will commence on the second year of production and will be payable in equal quarterly instalments over a two year period. Additionally, the above referenced premium have been amended such that Colossus will make a life-of-mine premium payment to Coomigasp per kilogram of precious metal sold from mine production in Brazilian Reais as follows:
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Range of production Premium per kilogram of Premium per ounce of
(millions of ounces of precious metal
metal) metal produced(i) produced
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From To
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R $41.99 (US
--- 2.03 R $1,445 (US $850)(ii) $26.44)(ii)
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2.03 4.79 R $975 (US $573) R $28.30 (US $17.82)
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4.79 10.26 R $900 (US $529) R $26.12 (US $16.45)
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10.26 17.65 R $900 (US $529) R $26.12 (US $16.45)
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17.56 --- R $900 (US $529) R $26.12 (US $16.45)
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(i) Precious metal is defined as any one of gold, platinum, palladium,
rhodium, osmium, ruthenium or iridium
(ii)R$ 1 equals US $0.5880 (November 9, 2009)
"This Amended Agreement is a winning outcome for Colossus, Coomigasp and the Serra Pelada Project. I would personally like to express gratitude to the board of directors, members and President of Coomigasp, Gesse Simao, for their continuing support of our partnership," commented Ari Sussman, Chairman and CEO. "We are now in a position to utilize the majority of our C$90 million treasury towards the development of this high-grade asset."
About Colossus:
Colossus is a minerals development company focused on a high-grade gold-platinum-palladium project in Brazil. The Company is currently focusing its efforts on the Serra Pelada project in Para State. 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: sixtyminutes.ninemsn.com.au. |
