Colossus issues shares for debt, arranges financing

Executive Summary

• Colossus Resources entered into debt settlement agreements, extinguishing $248,990.50 of outstanding obligations by issuing 4,979,810 common shares at a deemed price of $0.05 per share.
• The company announced a non‑brokered private placement for up to 1.8 million units at $0.05 per unit, targeting gross proceeds of up to $90,000 for general working capital.
• Each unit consists of one common share and half of a purchase warrant; full warrants allow the holder to buy an additional share at $0.10 for two years, with acceleration provisions if the market price exceeds $0.20 for 20 consecutive days after the hold period.

Key Details

• Debt Settlement:
• Aggregate debt settled: $248,990.50 (loans, management fees, other obligations).
• Shares issued for settlement: 4,979,810 common shares at a deemed price of $0.05 per share.

• Hold period on settlement shares: four months and one day from issuance.

• Private Placement Financing:

• Maximum units to be sold: 1.8 million units.
• Price per unit: $0.05, for total gross proceeds up to $90,000.
• Unit composition: 1 common share + ½ common share purchase warrant.
• Full warrant terms: Right to purchase 1 additional common share at $0.10; exercisable for two years from closing.

• Warrant acceleration trigger: If the company's common shares trade at or above $0.20 for 20 consecutive trading days after the four‑month hold period, the expiry date may be accelerated.

• Closing Conditions:

• Subject to customary conditions, including approval by the TSX Venture Exchange.

Notable Quotes

(No executive quotes provided in the release.)