Gran Colombia Gold Announces Agreement to Acquire US$5 Million of 10% Secured Convertible Debentures From Gold X Mining
05 December 2019 - 12:23AM
Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today
that it has agreed to acquire US$5 million of 10% secured
convertible debentures (the “Debentures”) in a non-brokered private
placement offering (the “Offering”) of US$20 million principal
amount of Debentures by Gold X Mining Corp. (TSXV: GLDX, formerly
Sandspring Resources Ltd). The proceeds of the Offering will be
used solely by Gold X Mining for exercising the option to purchase,
through its wholly owned subsidiary, ETK, Inc. (“ETK”), 100% of the
interest in the Toroparu Project in Guyana held by Mr. Alphonso
pursuant to a joint venture agreement between Mr. Alphonso and ETK.
Commenting on the transaction, Lombardo Paredes,
Chief Executive Officer of the Company, stated, “The exercise by
Gold X Mining of its option to purchase 100% of the Toroparu gold
deposit provides ownership certainty as they continue on the path
to create value for their stakeholders, including Gran
Colombia.”
Funding for the Offering comprises US$10 million
from Wheaton Precious Metals and US$5 million from each of Gran
Colombia and the Fiore Group. The Debentures will mature 36 months
from the date of closing, which is expected to occur during the
first two weeks of December 2019 and remains subject to approval by
the TSX Venture Exchange.
The Debentures will be convertible, in whole or
in part, at the option of holder into Gold X Mining common shares
based on a conversion price of CA$3.20 per share and the closing
Canadian dollar exchange rate as published by the Bank of Canada on
the business day prior to conversion.
Interest on the Debentures will be compounded
semi-annually and payable annually. Interest is payable in shares
at the option of the holder. If the holder does not elect to
receive shares, then Gold X Mining has the right to settle the
interest payment in cash or defer payment, with interest, to
maturity.
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 DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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