Colossus Minerals (TSX:CSI, StockForum), a Toronto-based entity engaged in acquiring and exploring mineral properties in Brazil, announced today that the company received the resignation of two board members, Douglas Reeson and Greg Hall.
With the recent funding pull-out, Colossus' corporate cookie crumbled 64% in a single trading day to $0.45 per share. The funding was a last-ditch effort to afford the company necessary operating capital after a disastrous two-year 95% market slide.
After Arias Resource Capital Fund's departure from the transaction, the company sat at the edge of a precipice with no assurance that Colossus would find enough financing to continue operations past December 31, 2013. Many in the finance community felt that the company was destined for insolvency.
Douglas Reeson's and Greg Hall's departure left the company without a Qualified Person and an Audit Committee chair. There are no plans at present to replace the outgoing directors.
Regardless of the impending and immediate nature of Colossus' probable corporate demise, shareholders seemed to breathe a sigh of relief, bolstering the company in trading after the announcement.
According to the news release, “Messrs. John Frostiak and Alberto Arias remain directors of the Company.”
Colossus made headlines recently when the company reported on their funding failure to the market's dismay.
Shares edged up 18.75% on the news to $0.095 per share.
Currently there are 175.5m outstanding shares with a market cap of $16.7 million.