Colossus Minerals Inc. (TSX:CSI,OTCQX:COLUF) reported the receipt of a proposal from a group of holders of Convertible Gold Linked Notes and Sandstorm Gold Limited, offering the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization.
As quoted in the press release:
On December 31, 2013 the Company received a proposal from these noteholders and Sandstorm Gold Limited (“Sandstorm”) which, if implemented would offer the Company the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization. However, existing holders of common shares would experience massive dilution to the point where they would, in aggregate, hold approximately 1.7% of the outstanding common shares after giving effect to the terms of the proposal.
The proposal is being considered by the Company’s directors and discussions are continuing.