Colossus Minerals Inc (COLUF)

[tsl444]

Colossus increases offering by $5.75-million

2009-09-30 19:46 ET - News Release
Shares issued 58,099,788
CSI Close 2009-09-30 C$ 5.89


Mr. Ari Sussman reports

COLOSSUS MINERALS INC. ANNOUNCES INCREASE TO BOUGHT DEAL FINANCING

Colossus Minerals Inc., due to the positive response the company has received, the common share offering announced in Stockwatch earlier today with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Thomas Weisel Partners Canada Inc., Canaccord Capital Corp., and GMP Securities LP, with PowerOne Capital Markets Ltd. to act as a selling group member, has been increased by an additional one million common shares. The underwriters will now purchase 11 million common shares of the company at a price of $5.75 per common share for gross proceeds of $63.25-million.

The company has agreed to grant the underwriters an overallotment option, to purchase up to an additional 1.5 million common shares ($8,625,000), exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full the total gross proceeds of the offering will be $71,875,000.

The common shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec.

The net proceeds are intended to be used to finance expenditures on the Serra Pelada project and other exploration activities and for general working capital and corporate purposes.

The offering is expected to close on or about Oct. 22, 2009, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.