Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) (“
Gran
Colombia”) announced today that it will be taking steps to
continue strengthening its balance sheet through permitted partial
early redemptions of its long-term debt.
8.00% Convertible Unsecured Debentures
due 2024 (“Convertible Debentures”)
Gran Colombia announced today that it has given
notice to the holders of the Convertible Debentures that, pursuant
to the provisions of the Trust Indenture dated as of April 4, 2019,
it will redeem CA$2,000,000 aggregate principal amount of the
Convertible Debentures (the “Redemption Amount”)
in cash on April 5, 2021 (the “Redemption Date”).
The Redemption Amount is equal to 10% of the aggregate principal
amount of the Convertible Debentures which are currently
outstanding. The redemption price (the “Redemption
Price”) will be CA$1,000.876712 for each CA$1,000
principal amount outstanding to holders of record as of February
28, 2021. The Redemption Price is equal to the Redemption Amount
plus accrued and unpaid interest. In accordance with the Trust
Indenture, holders of the Convertible Debentures, instead of
receiving the Redemption Price in cash, may choose to convert any
or all of the Convertible Debentures being redeemed into common
shares at the conversion price of CA$4.75 per share at any time
prior to the Redemption Date. Insiders of the Company, who in total
own 9.5% of the aggregate principal amount of the Convertible
Debentures outstanding, have indicated their intention to elect to
convert their portion of the Redemption Amount into common shares.
If the full Redemption Amount is settled with shares, the Company
will issue a total of 421,052 common shares to holders of the
Convertible Debentures.
Following the redemption, there will be
CA$18,000,000 aggregate principal amount of Convertible Debentures
issued and outstanding.
8.25% Senior Secured Gold-Linked Notes
due 2024 (“Gold Notes”) (TSX: GCM.NT.U)
Currently, the aggregate principal amount of
Gold Notes issued and outstanding is US$32,637,500. The next
regularly scheduled Amortizing Payment of the Gold Notes, amounting
to US$2,887,500, will take place on April 30, 2021, reducing the
outstanding amount to US$29,750,000. The Amortizing Payment will
include a Gold Premium, as applicable, based on the London P.M. Fix
as of April 15, 2021.
Gran Colombia also announced today that pursuant
to the Gold Notes Indenture, it will complete an early optional
redemption on May 3, 2021 of an additional US$10,000,000,
equivalent to approximately 33.6% of the aggregate principal amount
of its Gold Notes outstanding, following the scheduled Amortizing
Payment on April 30, 2021. In accordance with the Gold Notes
Indenture, the early redemption price will be 104.13% of the
aggregate principal amount of the Gold Notes being redeemed plus
accrued interest.
Following the Amortizing Payment and the early
optional redemption, there will be US$19,750,000 aggregate
principal amount of Gold Notes issued and outstanding.
Full details of the cash amounts to be paid in
connection with the Amortizing Payment and the early redemption
will be announced on or about April 15, 2021.
About Gran Colombia Gold
Corp.
Gran Colombia is a Canadian-based mid-tier gold
producer with its primary focus in Colombia where it is currently
the largest underground gold and silver producer with several mines
in operation at its high-grade Segovia Operations. Gran Colombia
owns approximately 44% of Aris Gold Corporation, a Canadian mining
company currently advancing a major expansion and modernization of
its underground mining operations at its Marmato Project in
Colombia. Gran Colombia’s project pipeline also includes an
approximately 18% equity interest in Gold X Mining Corp. (TSXV:
GLDX) (Guyana – Toroparu), an approximately 36% equity interest in
Denarius Silver Corp. (TSX-V: DSLV) (Colombia – Guia Antigua and
Zancudo) and an approximately 26% equity interest in Western Atlas
Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).
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 early redemption of its Gold Notes and Convertible
Debentures, 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, 2020 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,
contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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