Gran Colombia Gold Completes US$3.6 Million Reduction of Its 2020 Debentures in July 2017
August 01 2017 - 07:30AM
Gran Colombia Gold Corp. (TSX:GCM) announced today that its
strategy to aggressively reduce its debt resulted in a US$3.6
million decrease in its Senior Secured Convertible Debentures due
2020 (the “2020 Debentures”) (TSX:GCM.DB.V) in July 2017. As a
result, the issued and outstanding principal amount of the 2020
Debentures is currently US$48,819,786.
Serafino Iacono, Executive Co-Chairman of Gran
Colombia, said “We have continued to make progress in our
initiative to reduce our senior debt ahead of maturity. With the
partial redemption and further open market repurchases we have
completed in July, the US$3.6 million decrease in our senior
convertible debt eliminates the potential dilution to our equity
holders by approximately 1.9 million shares, equivalent to
approximately 2% of total shares on a fully diluted basis
(excluding stock options and warrants), and saves future interest
costs of about US$530,000.”
On July 31, 2017, the Company completed the
previously announced partial redemption at par of US$3,000,000
aggregate principal amount of its 2020 Debentures. This partial
redemption represents approximately 5.8% of the total 2020
Debentures issued and outstanding. The Company paid a redemption
amount of US$1.00 for each US$1.00 principal amount of 2020
Debentures being redeemed, equivalent to a pro-rata payment to
holders of approximately US$0.05789 for each US$1.00 principal
amount of 2020 Debentures issued and outstanding. Pursuant to the
indenture, the partial redemption was not applicable to the Senior
Secured Convertible Debentures due 2024.
The Company also announced today that it used
funds available in the sinking fund for the 2020 Debentures in July
2017 to complete additional purchases at a discount in the open
market under its normal course issuer bid (“NCIB”) totaling
US$643,000 aggregate principal amount of 2020 Debentures, which
were subsequently cancelled. This brings the cumulative aggregate
principal amount of 2020 Debentures repurchased and cancelled under
the Company’s current and prior NCIB to US$4,518,648.
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 continuing its expansion and
modernization activities at its high-grade 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.
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 the anticipated partial redemption of 2020
Debentures, production guidance and 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
30, 2017, 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, Please Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com
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