/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Nov. 19, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) ("Gran Colombia" or the "Company") announced today the filing of a preliminary short form prospectus in
all of the provinces of Canada, except Quebec, in connection with a
"best efforts" offering of a minimum of $7,000,000 up to a maximum of
$15,000,000 of units (the "Units") of Gran Colombia (the "Offering") at a price per Unit to be determined in the context of the market.
GMP Securities L.P. (the "Agent") will act as the lead agent in respect of the Offering. Certain
current shareholders and principals of the Company have indicated that
they intend to purchase a minimum of $5,000,000 of Units of the total
Each Unit will consist of one common share in the capital of the Company
(each, a "Common Share") and one-half of one common share purchase warrant (each whole common
share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common
Share at a price to be agreed upon between the Agent and the Company.
Warrants will expire five years following the closing of the Offering
(the "Closing Date"). The Warrants will be subject to an accelerated expiration date in
certain circumstances, as more particularly described in the
preliminary short form prospectus.
The Agent will also have the option to purchase from the Company
additional Units up to a number equal to 15 percent of the Units issued
under the Offering during the 30 day period immediately following the
The Company intends to use a portion of the net proceeds of the Offering
to support working capital initiatives in the Company's Segovia
project, including funding required to implement additional costs
savings initiatives. The balance of the net proceeds will be used to
maintain the financial flexibility of the Company including the funding
of efforts to improve operating cash flow, grow production and expand
its resources at the Segovia project..
Closing of the Offering is subject to certain conditions including, but
not limited to, the execution of a definitive agency agreement with the
Agent, receipt of all necessary regulatory and stock exchange approvals
including the receipt of listing approval by the Toronto Stock
The Closing Date will take place within 30 days of the receipt for the
final short form prospectus in respect of the Offering, or such other
date agreed upon by the Company and the Agent. For more information,
potential investors should read the preliminary short form prospectus,
together with the documents incorporated by reference therein,
including the risk factors. A copy of the preliminary short form
prospectus will be available on the SEDAR website at www.sedar.com.
The securities offered have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold,
directly or indirectly, within the United States or its territories or
possessions or to or for the account of any U.S. person (as defined in
Regulation S under the U.S. Securities Act) other than pursuant to an
available exemption from the registration requirements of the U.S.
Securities Act. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any such securities within the
United States, or its territories or possessions, or to or for the
account of any U.S. person.
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 currently advancing a
project to develop a modern, large-scale, gold and silver mine at its
Additional information on Gran Colombia can be found on the Company's
website at www.grancolombiagold.com and by reviewing the Company's 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 future
financial or operating performance of the Company and its projects.
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. Forward-looking statements
contained herein are made as of the date of this press release and Gran
Colombia disclaim, 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.
SOURCE: Gran Colombia Gold Corp.
For further information:
Gran Colombia Gold Corp.
VP, Investor Relations