SPDR Gold Trust (GLD): Gran Colombia Gold Announces it Will Set...

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Tuesday, 08/07/2018 9:56:42 AM

Tuesday, August 07, 2018 9:56:42 AM

Gran Colombia Gold Announces it Will Settle 100% of its 2018 Debentures
at Maturity With Common Shares; Expanding 2018 Drill Program to Test
Extensions of High-Grade Discovery at Depth in its El Silencio Mine
August 07, 2018
TORONTO, Aug. 07, 2018 (GLOBE NEWSWIRE) --

Gran Colombia Gold Corp. (TSX:GCM) announced today that it gave notice
on August 3, 2018 to the trustee (the “Trustee”) for its Senior
Unsecured Convertible Debentures due 2018 (the “2018 Debentures”) that
on maturity on August 11, 2018 (the “Maturity Date”), pursuant to the
provisions of the underlying indenture (the “Indenture”), the Company
has elected to satisfy its obligation to repay 100% of the outstanding
principal amount of its 2018 Debentures, and all accrued and unpaid
interest thereon (collectively, the “Outstanding Balance”), by issuing
and delivering common shares.
The volume weighted average trading price of the Company’s common
shares on the Toronto Stock Exchange for the 20 consecutive trading
days ending five trading days before the Maturity Date
exceeded US$1.95 per share.
Therefore, any elections received by the Trustee from holders of
2018 Debentures electing to receive cash and shares on the Conversion
Date (as defined herein) shall be null and void.

As of August 3, 2018, the aggregate principal amount of the 2018
Debentures issued and outstanding was approximately US$33.0 million,
and as such, the Company expects that it will be issuing a total of
approximately 17.0 million common shares on August 13, 2018 (the
“Conversion Date”) to settle the Outstanding Balance, bringing its
total issued and outstanding common shares as of the Conversion Date to
approximately 48.2 million.
Holders of the 2018 Debentures maintain their right to transfer or
convert their 2018 Debentures prior to the close of business on
August 10, 2018.

Serafino Iacono, Executive Co-Chairman of Gran Colombia, commented,
“We are pleased to conclude this final chapter of our effort to
simplify our capital structure and improve our ratio of debt to equity.
With increasing awareness of our under-valued equity, we hope that this
increase in shares outstanding will enhance liquidity in the market for
our stock.
At the end of June 2018, our cash position stood at approximately
US$25 million and the return of the 2018 Debentures’ sinking fund will
add another US$3.5 million of unrestricted cash back into our treasury.

Our primary focus continues to center on exploring and developing our
cash-generating Segovia Operations, recently acknowledged as one of the
top five high-grade underground gold operations globally in 2017.
On June 18, 2018, we announced that the ongoing channel sampling
program at the deepest levels of the El Silencio mine was successful
in identifying high-grade veins within the current mineral reserve and
resource envelope and is playing a key role in the definition of veins
that will be incorporated into updated mineral reserve and resource
estimates planned for early next year.
We are now ready to commit an additional US$2.3 million toward
additional drilling through the balance of 2018 to follow up on this
discovery to incorporate it into our future development and production
plan.”

El Silencio, the oldest and deepest mine in the Segovia district, has 45
levels descending to a depth of over 800 meters. As previously
announced, a total of 424 channels were sampled in the down-plunge
extensions of the north and south ore-shoots.
Of this total, 291 channels, or 69%, averaged over 10 g/t Au and 163
channels, or 38%, averaged over 30 g/t Au. This additional drilling
will aim to extend the north, middle and south ore-shoots down-plunge
with the objective of testing extensions another 200 meters below the
currently delineated resource.
The drilling program, expected to commence in September, will be a
combination of conventional drilling with 50 meter by 50 meter nominal
center spacing on the north ore-shoot and directional drilling on the
middle and south ore-shoots.

Please refer to Attachment 1 to this press release for an image related
to the additional drilling program at El Silencio which shows the
outline of the area in which the channel sampling program was
undertaken and the location of the planned drill holes to intercept and
test the three ore-shoots, a copy of which is also available on the
Company's website at
http://www.grancolombiagold.com

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 to focus on exploration, expansion and
modernization activities at its high-grade Segovia Operations.

Additional information on Gran Colombia can be found on its website at
http://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 ----the
reader is cautioned not to place undue reliance on forward-looking
statements.

For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com

A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/07eaca51-9da0-464b-8559-ce87c2464171

Attachment 1- El Silencio Channel Sampling Program and Planned Drill Holes