Mr. Mike Davies of Gran Colombia reports
GRAN COLOMBIA GOLD INTEREST IN SANDSPRING RESOURCES CHANGES TO APPROXIMATELY 19.45%
Gran Colombia Gold Corp.'s equity position in Sandspring Resources Ltd. has changed to 19.45 per cent through a non-brokered private placement, completed today by Sandspring. Sandspring intends to use the proceeds of the private placement to commence work on the feasibility study for its Toroparu gold project, for additional stepout and exploration drilling at its Chicharron project, and for general working capital.
Sandspring's private placement comprised a total of 37.5 million units at a price of 20 cents per unit, for gross proceeds of $7.5-million. Each unit issued in the private placement consists of one common share and one share purchase warrant entitling the holder to purchase one additional share at 35 cents for a period of 60 months. The placement was fully subscribed and included an investment from the company in the amount of $1.0-million.
Through completion of the private placement, the company has increased its holdings in Sandspring to an aggregate of 53.3 million common shares, 31.8 million share purchase warrants and 5.2 million subscription receipts. The common shares controlled by the company represent approximately 19.45 per cent of the outstanding common shares of Sandspring. Assuming conversion of the subscription receipts and exercise of warrants, the company, when combined with its existing ownership, would have control and direction over 95.5 million common shares, representing approximately 30.20 per cent of the then outstanding common shares of Sandspring on a partially diluted basis. The company can potentially become a control person of Sandspring, assuming conversion of its subscription receipts or the exercise of share purchase warrants, and has undertaken not to exercise warrants if such conversion would result in it becoming a control person of Sandspring, unless and until shareholder approval (excluding the company's votes) has been received. Sandspring intends to seek shareholder approval for the creation of the company as a control person at its annual general meeting to be held later in the year.
The additional shares and warrants were acquired for investment purposes, and the company has no present intention to dispose of or acquire further securities of Sandspring, although the company may in the future acquire or dispose of securities of Sandspring, through the market, privately or otherwise, as circumstances or market conditions warrant.
Copies of the early warning report filed by Gran Colombia will be available under Sandspring's profile on SEDAR or by contacting Gran Colombia directly.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia, where it is currently the largest underground gold and silver producer with several mines in operation at its Segovia and Marmato operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia operations.
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