TORONTO, Sept. 23, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM)
announced today that it has purchased for cancellation, to date, a
total of US$868,000 principal amount of senior unsecured silver-linked
notes at an average price of US$99.50 under its previously announced
normal course issuer bid with the Toronto Stock Exchange.
The Company is funding the repurchase of the Notes with the proceeds
from the sale of its silver production in order to capitalize on the
current high market prices for silver. Given the principal amount of
each Note is linked to the US$ financial equivalent of 66.7 ounces of
silver based on US$15 per ounce, buying back the Notes using the
proceeds from the Company's silver production at spot prices of
approximately US$41 per ounce allows the Company to substantially
reduce its cost of borrowing by monetizing its silver inventories and
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 six underground mines in operation. In
addition, Gran Colombia is also developing a large-scale, open-pit gold
and silver mine at Marmato. The Company also has a highly-prospective
land position in Colombia as well as an advanced stage property in
Venezuela and earlier stage properties in Mali.
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.
SOURCE Gran Colombia Gold Corp.
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