GCM Mining Announces Subscription to Aris Gold Convertible Debenture; Next Monthly Dividend to be Paid on April 18, 2022
March 21 2022 - 7:03AM
GCM Mining Corp. (“GCM Mining” or the “Company”) (TSX: GCM, OTCQX:
TPRFF) announced today that it has subscribed to a US$35 million
convertible senior unsecured debenture (the “Debenture”) to be
issued by a wholly-owned subsidiary of Aris Gold Corporation (“Aris
Gold”) (TSX: ARIS). The proceeds of the Debenture will be used to
pay a portion of the purchase price for the acquisition, through a
joint venture company, of a 20% ownership interest (the
“Transaction”) in the Soto Norte gold project in Colombia, one of
the world’s largest feasibility-stage gold projects with high-grade
mineral reserves, low capital intensity, low operating costs and
district-scale potential. Aris Gold will become the operator of the
Soto Norte gold project and will have an option to increase its
ownership to 50%. Aris Gold expects to close the Transaction in
April 2022.
The Debenture will be due, in cash, 18 months
from closing of the Transaction. At any time after 12 months from
closing of the Transaction, the Debenture may be converted, in
whole or in part, at GCM Mining’s sole discretion into common
shares of Aris Gold at a price to be determined in the context of
the market and in accordance with the rules of the Toronto Stock
Exchange following the issuance of this news release. The Debenture
will pay interest monthly with an annualized coupon of 7.5%. The
issuance of the Debenture is conditional upon closing of the
Transaction by Aris Gold and is subject to the approval of the
Toronto Stock Exchange. The ability of GCM Mining to fully execute
its conversion rights under the Debenture is subject to
disinterested Aris Gold shareholder approval at its next annual
meeting of shareholders.
Update to Payment Date for Monthly
Dividend Declared on March 15, 2022
GCM Mining also announced today that as a result
of the Good Friday bank holiday, payment of the next monthly
dividend of CA$0.015 per common share will be made on Monday, April
18, 2022 to shareholders of record as of the close of business on
March 31, 2022.
About GCM Mining Corp.
GCM Mining is a mid-tier gold producer with a
proven track record of mine building and operating in Latin
America. In Colombia, the Company is the leading high-grade
underground gold and silver producer with several mines in
operation at Segovia Operations. Segovia produced 206,000 ounces of
gold in 2021. In Guyana, the Company is advancing its fully funded
Toroparu Project, one of the largest undeveloped gold/copper
projects in the Americas, which is expected to commence production
of more than 200,000 ounces of gold annually in 2024. GCM Mining
pays a monthly dividend to its shareholders and has equity
interests in Aris Gold Corporation (44%; TSX: ARIS; Colombia –
Marmato), Denarius Metals Corp. (27%; TSX-V: DSLV; Spain –
Lomero-Poyatos and Colombia – Guia Antigua, Zancudo) and Western
Atlas Resources Inc. (26%; TSX-V: WA: Nunavut – Meadowbank).
Additional information on GCM Mining can be
found on its website at www.gcm-mining.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 timing and closing of the Aris Gold Convertible
Debenture and other 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
GCM Mining 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
31, 2021 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 GCM Mining 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,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@gcm-mining.com
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