Colossus Minerals creditors approve amended proposal; hearing March 13

By Caroline Salls

Pittsburgh, Feb. 25 - Colossus Minerals Inc.'s amended proposal under the Bankruptcy and Insolvency Act (Canada) was approved by the requisite majority of creditors at a meeting held Tuesday, according to a news release.

The company said it plans to seek approval from the Ontario Superior Court of Justice at a March 13 hearing.

Implementation of the proposal is subject to receipt of the court order and to satisfaction or waiver of other conditions.

Assuming satisfaction or waiver of the conditions within the expected timeframes, Colossus said it expects the plan to be implemented in March.

As previously reported, unsecured creditors will receive one new common share for every C$1 of a reduced claim amount and one new warrant for every C$2 of the reduced claim amount.

Warrants will entitle holders to purchase one common share at an exercise price of C$1. The warrants will expire in 2019.

Existing shareholders will not be entitled to any payment or other compensation.

Preferred creditors will be paid, without interest, in priority to unsecured creditors.

All crown claims will be paid in full within six months of the court approval date.

Administrative fees and expenses incurred and invoiced before the proposal implementation date will be paid in the ordinary course of business out of company cash.

Any administrative fees and expenses that have not been invoiced or paid at the implementation date will be unaffected claims.

Based in Toronto, Colossus is a gold and platinum exploration and development company.

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