Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF) announced today that it has closed its previously announced investment by Eric Sprott in a non-brokered private placement. Through the Private Placement, 2176423 Ontario Ltd., a corporation that is beneficially owned by Mr. Sprott, acquired 3,260,870 Units of Gran Colombia at a price of C$4.60 per Unit for a total investment of C$15 million. The proceeds of the Private Placement will be used for general working capital and corporate purposes. Each Unit consists of one common share and one common share purchase warrant exercisable into a full common share at C$5.40 per share expiring November 5, 2023. As of today, Gran Colombia has 53,257,106 common shares issued and outstanding and, including the effect of warrants, stock options and convertible debentures, the total would be 74,424,475 common shares on a fully diluted basis.
Prior to the Private Placement, Mr. Sprott did not own or control any shares of Gran Colombia. As a result of the Private Placement, Mr. Sprott beneficially owns or controls 3,260,870 common shares and 3,260,870 Warrants of the Company representing 6.12% on a non-diluted basis and approximately 11.54% of the issued and outstanding common shares of Gran Colombia assuming the exercise of the Warrants acquired in the Private Placement.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Gran Colombia including on the open market or through private acquisitions or sell securities of Grand Colombia including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
2176423 Ontario Ltd.’s early warning report will appear on Gran Colombia’s profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
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.
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