/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.