Gran Colombia Gold Increases Interest in Sandspring Resources to Approximately 19.96%
Gran Colombia Gold Increases Interest in Sandspring Resources to
Approximately 19.96%
TORONTO, June 12, 2019 -- Gran Colombia Gold Corp. (TSX: GCM, OTCQX: TPRFF) announced today that has increased its
equity position in Sandspring Resources Ltd. (“Sandspring”) (TSX-V: SSP, OTCQX: SSPXF) to 19.96% through a non-brokered
private placement (the “Private Placement”) completed today by Sandspring. Sandspring intends to use the proceeds of the
Private Placement to continue work on the re-scoping of the Toroparu Project, additional exploration at its Chicharron Project
and for general working capital. On June 4, 2019, Sandspring announced positive results of a preliminary economic
assessment for its Toroparu Project and the next stage of development will encompass completion of a feasibility study for the
project.
Sandspring’s Private Placement comprised a total of 26,801,000 units (each, a “Unit”), and 5,200,000 subscription receipts
(each, a “Receipt”), at a price CA$0.125 per Unit and Receipt, for gross proceeds of CA$4.0 million. Each Unit issued in the
Private Placement consists of one common share and one share purchase warrant entitling the holder to purchase one
additional share at CA$0.165 for a period of sixty (60) months. The placement was fully subscribed and included an investment
from the Company in the amount of CA$2.0 million.
The Receipts were issued to the Company as part of its participation in the Private Placement. Each Receipt will automatically
convert into a Unit upon Sandspring receiving shareholder approval for the creation of the Company as a “control person” of
Sandspring, being a holder of greater than 20% of the voting rights of Sandspring’s outstanding securities. In the event the
Receipts have not converted into Units prior to December 31, 2019, the Company will be entitled to a refund of the proceeds
received from the Receipts in the amount of $650,000, along with interest at the rate of 5% per annum. Sandspring intends to
seek shareholder approval for the creation of the Company as a “control person” at its annual general meeting to be held later
in the year.
Through completion of the Private Placement, the Company has increased its holdings in Sandspring to an aggregate of
48,300,000 common shares, 26,800,000 share purchase warrants and 5,200,000 Receipts. The common shares controlled by
the Company represent approximately 19.96% of the outstanding common shares of Sandspring. Assuming conversion of the
Receipts and exercise of the underlying warrants, the Company, when combined with its existing ownership, would have
control and direction over 85,500,000 common shares representing approximately 30.66% of the then outstanding common
shares of Sandspring. The Company can potentially become a “control person” of Sandspring assuming conversion of the
Receipts or the exercise of share purchase warrants and have undertaken not to exercise the warrants if such conversion
would result in them becoming a control person of Sandspring, unless and until shareholder approval (excluding the
Company’s votes) has been received.
The additional shares, warrants and Receipts were acquired for investment purposes and the Company has no present
intention to dispose of or acquire further securities of Sandspring, although the Company may in the future acquire or dispose
of securities of Sandspring, through the market, privately or otherwise, as circumstances or market conditions warrant.
Copies of the early warning report filed by Gran Colombia will be available under Sandspring’s profile on SEDAR
(www.sedar.com) or by contacting Gran Colombia directly at the address below.
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 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 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
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 27,
2019 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 Davies
Chief Financial Officer
(416) 360-4653