Brazil Mine Clinches Bought Share Deal

Toronto-based Colossus Minerals, operator of the Serra Pelada project in Brazil, has raised CAD86m ($85m) through a equity-linked bought deal. Colossus sold 86,250 units at CAD1,000 each, which includes the underwriters’ exercise of an overallotment. Each unit consists of a CAD1,000 face value of a senior unsecured 2016 gold-linked note and 60 common share purchase warrants. The 2016 notes pay between 6% and 13%, dependent on the price of gold. Each warrant entitles the holder to acquire one common share of Colossus at a price of CAD8.50. Dundee Securities, Clarus, Canaccord Genuity and GMP managed the deal. Proceeds will help fund the Serra Pelada gold and platinum mine in the state of Para, Colossus’ sole asset, which is expected to begin commercial production in 2013.