GRAN COLOMBIA GOLD ACQUIRES AN OPTION TO PURCHASE ADDITIONAL PROPERTIES AND PROCESSING FACILITIES WITHIN THE SEGOVIA/REMEDIOS AR
21 Dezember 2010 - 1:00PM
PR Newswire (Canada)
TORONTO, Dec. 21 /CNW/ -- TORONTO, Dec. 21 /CNW/ - Gran Colombia
Gold Corp. (TSX-V:GCM) is pleased to announce that it has signed an
option agreement with Minatura International LLC and various
affiliated companies (collectively, "Minatura") providing for an
option to purchase 65% of Minatura's mining properties and
processing assets in the Segovia/Remedios area of Antioquia,
Colombia, which are within the same geological structure of the
Gran Colombia Mines (formerly known as the Frontino Mines). Maria
Consuelo Araujo, Chief Executive Officer stated: "We are pleased
with this opportunistic acquisition which allows Gran Colombia Gold
to further amalgamate properties in this area. The option
agreement provides us with exploration rights to the areas north of
our Remedios properties and south of our Gran Colombia properties
(the area formerly known as the Frontino property), where we plan
to prove continuity of the high-grade gold mineralized systems. The
investment provides us with ready and permitted processing capacity
for the ore from our Remedios properties, our Gran Colombia Mines
and small miners in the area. While our main priority in 2011
remains to increase production at our Gran Colombia Mines and
continue exploration at our other properties, this acquisition is a
perfect fit for our development strategy within the
Remedios/Segovia mining district." The option includes: (i)
six existing mining concessions for a total acreage in excess of
662 hectares, including the existing San Pablo Mine and the La
Bartola Mine; (ii) 24,300 hectares of applications for concessions
in the same area; and (iii) existing permitted processing
facilities of approximately 50 tonnes per day ("tpd") capacity
(collectively, the "Assets"). Under the terms of the option
agreement, Remedios Gold, S.A. ("Remedios"), a wholly owned
subsidiary of the Company, paid US$300,000 for a 90 day due
diligence term, which was paid with cash on hand. If the
option is exercised, Remedios will pay Minatura an additional
US$7,700,000 for a 65% interest in the Assets and will commit
to: (i) a US$7,000,000 investment plan over two years, which
is designed to explore and evaluate geological resources with the
objective of developing an initial National Instrument 43-101
compliant technical report, and to upgrade and develop the San
Pablo Mine to bring it into production; and (ii) upgrade the
existing processing plant at the San Pablo Mine to at least 250 tpd
capacity, for an estimated investment of US$3,500,000. The option
agreement also includes a put/call option between the parties for
Minatura's remaining 35% of the Assets for a period of three years
from the closing date, for a price equivalent the greater of:
(i) US$10 million; and (ii) such percentage of the measured and
indicated resources at a value of US$60/oz Au and of inferred
resources at a value of US$20/oz Au, as per the initial National
Instrument 43-101 compliant report. To view Map 1 please visit:
http://files.newswire.ca/920/grancolombiamap1.pdf About Gran
Colombia Gold Corp.: Gran Colombia Gold is a Canadian-based gold
and silver exploration and development company focused on
acquiring, developing and operating properties of merit in
Colombia. The Company holds 95% of the former Frontino gold and
silver assets, including the largest underground gold and silver
mining operation in Colombia. It also owns four more exploration
projects in Colombia for total exploration acreage of approximately
21,400 hectares. The Company is committed to implementing its
exploration and development strategy with a comprehensive
environment, safety and community program, meeting international
standards of best practice. Additional information on the Gran
Colombia Gold can be found on the Company's website at
www.grancolombiagold.com and by reviewing the Company's profile on
SEDAR at www.sedar.com. Forward Looking Information: This news
release contains "forward-looking information", which may include,
but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
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. Forward-looking statements contained
herein are made as of the date of this press release and Gran
Colombia disclaim, 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. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/December2010/21/c6926.html
pBelinda Labattebr/ Investor Relationsbr/ (647) 436-2152/p
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