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

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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

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