Press release from CNW Group
Gran Colombia successfully completes equity offering
Tuesday, March 18, 2014
Gran Colombia successfully completes equity offering09:29 EDT Tuesday, March 18, 2014
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, March 18, 2014 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) (the "Company" or "Gran Colombia") is pleased to announce today that it has successfully completed its previously announced equity offering of 8,423,837 units of Gran Colombia (the "Units") at a price per Unit of C$1.93 for aggregate gross proceeds to the Company of C$16,258,005 (the "Offering"), underwritten by GMP Securities L.P. Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. The Offering was completed pursuant to a short form prospectus dated February 28, 2014.
The Offering includes the exercise in part by the underwriter of the over-allotment option for an additional 923,837 Units representing C$1,783,005 in additional gross proceeds to the Company.
The Company intends to use a portion of the net proceeds of the Offering to repay the previously announced bridge loan. The balance of the net proceeds will be used to maintain the financial flexibility of the Company, including the funding of efforts to improve operating cash flow, grow production and expand resources at the Segovia project.
Blue Pacific Assets Corp. ("Blue Pacific"), an investment company in which three directors of the Company together indirectly hold a majority share, has subscribed for 2,211,442 Units pursuant to the Offering. This increases Blue Pacific's beneficial ownership in the Company to approximately 14.9% of the issued and outstanding shares in the capital of the Company on a non-diluted basis.
The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production Company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is currently advancing a project to develop a modern, large-scale, gold and silver mine at its Segovia operations.
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.
SOURCE Gran Colombia Gold Corp.
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