Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) has identified its next steps towards securing funding for its 75% owned Serra Pelada gold-platinum-palladium Mine. The Colossus board of directors have decided to review the Company’s strategy, and will be ceasing underground development for the time being as they focus on de-risking the project as well as decrease overall cost.
As quoted in the press release:
Accordingly, the board of directors has taken a decision that the Company’s strategy should be reviewed. To achieve that purpose, the Company will take the following steps:
- Cease underground development for the time being and focus on de-risking the project: completing the dewatering and undertaking additional underground drilling; and decreasing overall costs.
- Complete the NI 43-101 compliant resource estimate with Roscoe Postle Associates Inc. by the end of December.
As previously disclosed, the Company will need additional capital to carry on its business activities. These circumstances indicate a material uncertainty which may cast significant doubt as to the ability of the Company to continue as a going concern. The Company, in conjunction with its key stakeholders, is continuing its efforts to raise short-term capital to partly address its working capital deficiency and pursue other strategic alternatives.