TORONTO, Oct. 30, 2019 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) is pleased to announce that Eric Sprott has agreed to purchase 3,260,870 Units of the Company in a non-brokered private placement (the “Private Placement”) at a price of C$4.60 per Unit, representing a 4% discount to the five-day volume weighted average price of $4.79 for the period ended October 29, 2019, for a total investment of $15 million. The proceeds of the Private Placement will be used for general working capital and corporate purposes. Closing of the Private Placement is subject to the receipt of regulatory approvals, including the Toronto Stock Exchange, and is expected to close two business days following receipt of such approval. Each Unit consists of one common share and one common share purchase warrant exercisable into a full common share at $5.40 per share for a period of four years from the date of issuance.
Serafino Iacono, Executive Chairman of Gran Colombia, stated, “On behalf of the Board and Management of Gran Colombia, I am pleased to welcome Mr. Eric Sprott as a major investor in our Company. Our success in the turnaround of Gran Colombia has led to an increase in gold production, earnings and free cash flow and has strengthened the Company’s financial position. In September, we were recognized in the inaugural TSX30 based on the increase in our share price over the last three years. We see the investment by Mr. Sprott, a well-known gold investor, as solid endorsement of the potential for further appreciation in Gran Colombia’s shares. We are about to ramp up our near-mine and regional exploration programs at our high-grade Segovia Operations with approximately 70,000 meters of drilling over the next 18 months and we are unlocking value in our Marmato Project through a spin out to a separate-listed vehicle, in which we will maintain a control position, to fund a major underground mine expansion. We look forward to the relationship with Mr. Sprott as we continue to execute our strategy.”
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations and, through a spin out transaction with Bluenose Gold Corp. announced on October 7, 2019, Gran Colombia is progressing toward a major expansion and modernization of its underground mining operations at the Marmato Project.
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 27, 2019 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com