20:56:35 EST Thu 27 Jan 2022
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Caldas Gold Corp
Symbol CGC
Shares Issued 99,800,162
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Globe says Caldas deal needs permit extension

2020-12-03 07:30 ET - In the News

Also In the News (C-YRI) Yamana Gold Inc

The Globe and Mail reports in its Thursday edition that the management takeover of Caldas Gold will not go ahead unless a key condition is met. The Globe's Niall McGee writes that last week, Caldas announced a syndicate that includes former Goldcorp executives Ian Telfer and David Garofalo, as well as Yamana Gold founder Peter Marrone and Frank Giustra, is set to invest $38-million as part of an $85-million share sale. Earlier this year, Caldas was spun out of Gran Colombia Gold. Its chief asset is a small underground mine in Colombia called Marmato. New management and a new board of directors are set to be put in place, with Mr. Telfer as chairman and Neil Woodyer, a former head of Leagold Mining, as chief executive officer. The deal will not happen if Caldas does not get a 20-year extension on its mining permit for Marmato, which expires next year. Furthermore, even if Caldas obtains the extension, the new investors can walk away if they do not like the terms of the royalty agreement with the government. While retail shareholders would likely be hit hard if the financing falls through, the prospective shareholders are protected, as their entire investment would be refunded in that scenario.

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