TORONTO, Aug. 01, 2017 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (GCM.TO) announced today that its strategy to aggressively reduce its debt resulted in a US$3.6 million decrease in its Senior Secured Convertible Debentures due 2020 (the “2020 Debentures”) (GCM-DBV.TO) in July 2017. As a result, the issued and outstanding principal amount of the 2020 Debentures is currently US$48,819,786.
Serafino Iacono, Executive Co-Chairman of Gran Colombia, said “We have continued to make progress in our initiative to reduce our senior debt ahead of maturity. With the partial redemption and further open market repurchases we have completed in July, the US$3.6 million decrease in our senior convertible debt eliminates the potential dilution to our equity holders by approximately 1.9 million shares, equivalent to approximately 2% of total shares on a fully diluted basis (excluding stock options and warrants), and saves future interest costs of about US$530,000.”
On July 31, 2017, the Company completed the previously announced partial redemption at par of US$3,000,000 aggregate principal amount of its 2020 Debentures. This partial redemption represents approximately 5.8% of the total 2020 Debentures issued and outstanding. The Company paid a redemption amount of US$1.00 for each US$1.00 principal amount of 2020 Debentures being redeemed, equivalent to a pro-rata payment to holders of approximately US$0.05789 for each US$1.00 principal amount of 2020 Debentures issued and outstanding. Pursuant to the indenture, the partial redemption was not applicable to the Senior Secured Convertible Debentures due 2024.
The Company also announced today that it used funds available in the sinking fund for the 2020 Debentures in July 2017 to complete additional purchases at a discount in the open market under its normal course issuer bid (“NCIB”) totaling US$643,000 aggregate principal amount of 2020 Debentures, which were subsequently cancelled. This brings the cumulative aggregate principal amount of 2020 Debentures repurchased and cancelled under the Company’s current and prior NCIB to US$4,518,648.
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 its 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 the anticipated partial redemption of 2020 Debentures, 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 "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, 2017, 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.