Silver-Linked Noteholders provide update regarding opposition to the Gran Colombia Gold Corp. (TSX: GCM, OTC: TPRFF) Restructuring Proposal that significantly prejudices the Silver-Linked Notes in favour of the Gold-Linked Notes

TORONTO, Dec. 15, 2015 /CNW/ - MMCAP International Inc. SPC and other holders of Silver-Linked Notes (the "Silver Noteholder Group") issued by Gran Colombia Gold Corp. ("Gran Colombia") provide the following update in respect of their opposition to Gran Colombia's revised debt restructuring proposal (the "Restructuring Proposal") under the Business Corporations Act (British Columbia) ("BCBCA").

In a December 3, 2015 press release (see link below), the Silver Noteholder Group announced their intention to form an ad hoc group in opposition to the Restructuring Proposal. Since that time, the Silver Noteholder Group has been pleased with the response from other holders of Silver-Linked Notes that strongly oppose the Restructuring Proposal. 

The Silver Noteholder Group (owners of approximately 19% of the $78 Million Silver-Linked Notes) believes that Gran Columbia's Restructuring Proposal announced on November 30, 2015 unduly favours the holders of the Gold-Linked Notes to the detriment of the holders of the Silver-Linked Notes. Accordingly, the Silver Noteholder Group intends to oppose the current Restructuring Proposal at the meeting of Silver-Linked Noteholders scheduled for December 22, 2015.

The Restructuring Proposal is not in the best interests of the holders of the Silver-Linked Notes and the Silver Noteholder Group reserves all of its rights to commence proceedings against Gran Colombia and any guarantors of the Silver-Linked Notes in Canada, Colombia or elsewhere, including seeking certain relief under the BCBCA in the event that Gran Colombia proceeds with the current proposal.

We encourage holders of Silver-Linked Notes to contact their investment advisor to discuss the alternatives available.

The Silver Noteholder Group may be contacted by other holders of the Silver-Linked Notes to join the ad hoc group or to show your support by using the contact information set out below.

Link to December 3, 2015 press release: http://www.marketwired.com/press-release/silver-linked-noteholders-announce-opposition-revised-restructuring-proposal-gran-columbia-2079037.htm

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION FOR OFFERS TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND AS A RESULT MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT U.S. REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE U.S. REGISTRATION REQUIREMENTS.

Cautionary Statement on Forward Looking Statements

This news release may contain forward-looking statements or forward looking information under securities legislation including the intention of the Silver Noteholder Group to oppose the Restructuring Proposal and the formation of an ad hoc group. 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.

 

SOURCE MMCAP International Inc. SPC

For further information: Hillel Meltz, MMCAP International Inc. SPC, Tel: (416) 408-0996, e-mail: hmeltz@mmcap.ky

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