Sandstorm (V.SND) reviewing investment in cash-strapped Colossus Minerals (T.CSI)

Stockhouse Editorial
0 Comments| December 6, 2013


Sandstorm Metals & Energy Ltd. (TSX: V.SND, Stock Forum) released an update Friday in relation to Colossus Minerals Inc. (TSX: T.CSI, Stock Forum) and their efforts to secure funding for the balance of expenses at the Serra Pelada mine in Brazil.

“At this time, the board of directors of Colossus has decided to cease underground development at Serra Pelada in order to reduce ongoing costs,’’ Sandstorm said in a press release.

The management team at Colossus has estimated that US$70 million will be required in order to meet the company’s existing obligations and progress Serra Pelada to production.

Sandstorm went on to say that it will be reviewing its investment in Colossus for a partial or full impairment as there can be no assurance that adequate funding will be available for Colossus in the future.

After trading in the shares resumed Friday, Sandstorm fell 2.5% to $1.23, leaving a market cap of $42.6 million, based on 34.7 million shares outstanding. The 52-week range is $5.20 and $1.05.

Colossus Minerals Inc. shares fell 8% to 23 cents, leaving a market cap of $40.4 million, based on 175.5 million shares outstanding. The 52-week range is $5.06 and 15 cents.

Tags: INDUSTRIAL METALS & MINERALS GOLD

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