Colossus Minerals Inc. (TSX:CSI) announced that it intends to conduct a private placement of a senior secured convertible loan and units for gross proceeds of CAD 25,000,000 on December 18, 2013. The company will raise CAD 4,000,000 through issuance of senior secured convertible loan and CAD 21,000,000 through issuance of units. The transaction will involve participation form Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P, funds managed by existing investor, Arias Resource Capital Management LP. The transaction will take place in two tranches. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire another common share for a period of five years following the closing date of the transaction. The price of the units will be determined in the context of the market, provided that such price will reflect the maximum discount permitted by the Toronto Stock Exchange. The warrants will be exercisable at the market price of the common shares at the time of pricing of the units. The raising of units is expected to close on or about January 15, 2013. Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P will invest in the units for a minimum of CAD 10,000,000 and maximum of CAD 15,000,000.

The loan will consist of the funds lending up to an aggregate amount of CAD 4,000,000 comprised of a CAD 2,000,000 commitment by the funds and a back-stop commitment for an additional CAD 2,000,000 in the event the company is unable to find other lenders. The loan will have a maturity date of three months from the closing date. Interest will accrue at an annual rate of 20% and will be payable at the option of the company in common shares of the company unless the note holders do not approve the note holders' resolutions, in which case the interest will be paid in cash. The company will also issue an aggregate of 12,500,000 warrants to the investors pro rata on each draw down of the loan. Each such warrant will have an exercise price equal to the share price of the company on the closing date and will be exercisable for five years from that date. The loan is expected to be funded on December 27, 2013. The Company may not draw down on the loan until Sandstorm Gold Ltd. has entered into a binding term sheet relating to the Sandstorm Amendment Agreement. The tranche of the units will be contingent upon the implementation of the proposed amendments to the notes contemplated by the note holders resolutions and execution of the Sandstorm amendment agreement. The transaction is subject to the regulatory approval.

On December 20, 2013, Colossus Minerals Inc. cancelled the transaction. The company announced that Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. will not participate in the transaction.