Gran Colombia Gold Corp. Completes $40 Million Private Placement

February 06, 2020

Gran Colombia Gold Corp. (“Gran Colombia”) completed a C$40 million non-brokered private placement to investors including 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott, and MMCAP International Inc. SPC of units at a price of C$5.60 per unit. Each unit consists of one common share and one common share purchase warrant of Gran Colombia exercisable into a full common share at C$6.50 per share expiring February 6, 2023.

The proceeds of the private placement are intended to be used to redeem US$19,162,500 of its US$63,878,000 of 8.25% Senior Secured Gold-Linked Notes due 2024. The balance of the proceeds will be used for general working capital and corporate purposes, including potential repurchases of the company’s listed warrants.

Wildeboer Dellelce LLP acted for Gran Colombia in connection with the private placement with a team comprising Perry Dellelce, Peter Volk, Melissa Smith, and Sarim Ali (corporate/securities).