TORONTO, June 8, 2015 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM, OTC: TPRFF) announced today the details of the interest payments it will make on June 30, 2015 on its Senior Secured Gold-Linked Notes due 2017 and its Senior Unsecured Silver-Linked Notes due 2018.
Gold Note holders of record as of June 19, 2015 will receive approximately US$8.77 per US$1,000 face value of the notes, leaving a balance of interest in arrears after the June payment of US$17.26 (approximately two months) per US$1,000 face value of the Gold Notes. Silver Note holders of record as of June 19, 2015 will receive approximately US$4.38 per US$1,000 face value of the notes which will be applied against the interest in arrears from December 31, 2014, leaving a balance of US$4.66 per US$1,000 face value of Silver Notes after the June payment. These payment amounts are derived based on a 32-day period from May 30, 2015 through June 30, 2015, inclusive.
The interest payments are being made by the Company while we continue work on a comprehensive plan moving forward. The Company is continuing to work closely with its financial advisor, GMP Securities L.P. and continues discussions with Gold and Silver note holders. The Company will not make the semi-annual interest payment due June 30, 2015 on its Silver Notes but will continue to make monthly interest payments toward all amounts in arrears until a comprehensive plan is in place.
The Company also announced today that on May 29, 2015 it completed the sale of its 60% interest in the CIIGSA refinery operation in Medellin for total cash consideration of approximately US$0.8 million, as further discussed in the Company's first quarter 2015 financial statements and MD&A.
In addition, the Company has received a portion of its VAT refund claims in Colombia and has now repaid all amounts due under the US$2.4 million factoring loan completed on March 3, 2015, as further outlined in the Company's first quarter 2015 MD&A. The proceeds of this loan were used to pay outstanding supplier withholding tax remittances due to the Colombian tax authority and allowed the Company to file all pending VAT refund claims up to December 31, 2014.
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 Segovia operations.
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 and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 31, 2015, 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.
SOURCE Gran Colombia Gold Corp.
For further information: Mike Davies, Chief Financial Officer, (416) 360-4653, [email protected]