Colossus Minerals Inc (COLUF)

[tsl444]

UPDATE 1-Colossus Minerals to raise C$57.5 mln from stock sale
Wed Sep 30, 2009 5:35pm EDT

* To sell 10 mln shrs on bought-deal basis at C$5.75/shr

* Proceeds to be used for Serra Pelada project in Brazil

Sept 30 (Reuters) - Colossus Minerals Inc (CSI.TO: Quote, Profile, Research, Stock Buzz) said it would raise C$57.5 million through the sale of common shares to fund its Serra Pelada project in Brazil.

Colossus said a syndicate of underwriters, led by Macquarie Capital Markets Canada, have agreed to buy 10 million common shares of the company at C$5.75 each, a discount of 2.4 percent to Wednesday's close.

The other underwriters in the syndicate include Thomas Weisel Partners Canada Inc, Canaccord Capital Corp, and GMP Securities L.P, the company said in a statement.

The company has also agreed to grant the underwriters an over-allotment option to purchase up to an additional 1.5 million common shares.

If the underwriters exercise this option, the gross proceeds of the offering, which is expected to close on or about Oct 22, will be C$66.1 million, the company said.

Shares of Colossus Minerals closed at C$5.89 Wednesday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Hezron Selvi)