The Prospector News

Gran Colombia Gold Announces Agreement to Acquire US$5 Million of 10% Secured Convertible Debentures From Gold X Mining

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

Gran Colombia Gold Announces Agreement to Acquire US$5 Million of 10% Secured Convertible Debentures From Gold X Mining






Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF) announced today that it has agreed to acquire US$5 million of 10% secured convertible debentures in a non-brokered private placement offering of US$20 million principal amount of Debentures by Gold X Mining Corp. (TSX-V: 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. 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.


Posted December 4, 2019

Share this news article


Ximen’s Mining Update, Drill Test of Geophysical Anomaly - Intersected over 235 metres of Magnetite Mineralization - Gold Drop Property - Greenwood BC

Ximen Mining Corp. (TSX-V:XIM) (FRA:1XMA) (OTCQB:XXMMF) is please... READ MORE

December 6, 2019

Jordan Roy-Byrne - “You Should be Buying Gold Stocks Now”

A few weeks ago we noted the bullish setup for 2020.  ... READ MORE

December 5, 2019

Andrew Miller - We are in an Upward Transition Period for Lithium & EVs (Audio)

Listen Here Andrew sees a vital and intense lithium market with c... READ MORE

December 5, 2019

Playfair expands Storboren Copper Anomaly

Playfair (TSX-V:PLY) has developed a compelling VMS drill target ... READ MORE

December 5, 2019

Gianni Kovacevic - “TiempoDeActuar?”

The COP 25 Climate Change Conference is taking place December 3 -... READ MORE

December 4, 2019

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions