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
401 BAY STREET, SUITE 2400, PO BOX 15, TORONTO, ONTARIO M5H 2Y4 CANADA
PHONE: 416-360-4653; FAX: 416-603-4653
NEWS RELEASE
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
TORONTO, CANADA, Tuesday, August 7, 2018 – 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 am ount 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 Compa ny 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 mar ket 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 wi ll 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 www.grancolombiagold.com.
401 BAY STREET, SUITE 2400, PO BOX 15, TORONTO, ONTARIO M5H 2Y4 CANADA
PHONE: 416-360-4653; FAX: 416-603-4653
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 moderniz ation activities at its high -
grade 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.
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 production guidance and 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 "beli eves" 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
27, 2018, 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 r esult 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 Davies
Chief Financial Officer
(416) 360-4653
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/07eaca51-9da0-464b-8559-ce87c2464171
401 BAY STREET, SUITE 2400, PO BOX 15, TORONTO, ONTARIO M5H 2Y4 CANADA
PHONE: 416-360-4653; FAX: 416-603-4653
Attachment 1 – Location of El Silencio Mine Deep Channel Sampling Program and Planned Drill
Holes