Helius Minerals Limited (TSXV: HHH) has signed a definitive Exclusivity, Share Option, and Acquisition Agreement dated as of 3 March 2025, with Colossus Minerals Inc. regarding the Serra Pelada gold-PGM project in Brazil.
Colossus put Serra Pelada on a care and maintenance programme in 2014 when Colossus became insolvent. The property interests are held by Colossus’ Brazilian subsidiaries, Colossus Mineração Ltda. and Mineração Fazenda Monte Belo Ltda.
Under the Definitive Agreement, Helius has been provided with a twelve-month exclusivity period during which it would raise not less than US$1M and allocate a minimum of US$500,000 to undertake the following activities:
- Reviewing and developing a plan to ensure compliance with relevant mining laws and other regulatory requirements
- Formulating a comprehensive strategy to address outstanding debts, including those related to ongoing litigation, of the Target Companies
- Developing a detailed plan to rehabilitate the Serra Pelada Project, the Target Companies and SPCDM
Christian J. Grainger, President and CEO commented: “We are excited to have restructured Helius with exceptional gold and copper assets in Nevada, USA, located within the prospective Walker Lane trend, and now Brazil with an option to rejuvenate the high-grade Serra Pelada gold-PGM project. I am particularly excited to be returning to Serra Pelada again, having significant experience with this deposit, and to be working with our partners COOMIGASP”.
In 2014, Colossus became insolvent after significant development expenditure of over C$280M at Serra Pelada. Colossus’ dewatering measures proved inadequate in controlling water ingress. This created liquidity and credibility issues immediately before metal production was to commence, which led to the collapse of Colossus.
The Serra Pelada Project was thereafter put on a care and maintenance program, and Colossus reported that it halted all exploration, construction and development activities to conserve cash in 2014. Helius understands that as a result of the insolvency, certain regulatory and compliance matters must be addressed to permit the project to move forward.
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