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Caldas Gold Corp
Symbol CGC
Shares Issued 99,800,162
Close 2020-12-03 C$ 2.40
Recent Sedar Documents

Caldas closes $85-million private placement

2020-12-03 16:39 ET - News Release

Mr. Mike Davies reports

CALDAS GOLD ANNOUNCES CLOSING OF C$85 MILLION SUBSCRIPTION RECEIPT OFFERING

Caldas Gold Corp. has completed the non-brokered private placement with a group of investors principally referred by Aris Gold Corp. for aggregate gross proceeds of $85-million. The terms of the offering and proposed board, management and name changes were announced by way of news release on Nov. 23, 2020.

The $85-million has been deposited in escrow pending the satisfaction of certain release conditions on or before March 31, 2021, or as may be extended. The net proceeds are expected to be used for the modernization and expansion of the Caldas Gold mining operations in Colombia and for working capital purposes. The primary release conditions are listed herein and are expected to be satisfied by mid-January, 2021:

  • The company shall have obtained an extension for the mining contribution/concession contract located within the mining licence area referred to as Zona Baja for an additional minimum period of 20 years;
  • The required steps are taken to reorganize the board of the company, as described herein;
  • All required steps are taken to change the name of the company to Aris Gold Corp.;
  • The investor agreement between the company and Gran Colombia Gold Corp. remains in full force and affect, unamended.

The investor agreement provides that, so long as Gran Colombia owns more than 20 per cent of the company, (i) Gran Colombia has the right to nominate two directors to the board, (ii) Gran Colombia is required to vote in accordance with the recommendations of the board or management of the company, with certain exceptions, and (iii) Gran Colombia has the right to maintain its equity interest in the company if new equity securities are issued in connection with a future financing or non-cash transaction. In addition, Gran Colombia has agreed to not sell any of its Caldas Gold equity securities (common shares and warrants) without prior consent from the company for a period of two years.

Please see the company's news release dated Nov. 23, 2020, for a description of all of the release conditions.

The new board of the company

Ian Telfer:  chair, independent; newly nominated

David Garofalo:  independent; newly nominated

Peter Marrone:  independent; newly nominated

Daniela Cambone:  independent; newly nominated

Neil Woodyer:  non-independent; newly nominated

Attie Roux:  non-independent; newly nominated

Serafino Iacono:  non-independent; current Caldas Gold board member, Gran Colombia nominee

Hernan Martinez:  independent; current Caldas Gold board member, Gran Colombia nominee

The new board will be supported by Frank Giustra, a mining financier and philanthropist, who will act as a strategic adviser to the company.

Following the constitution of the new board, it is proposed that Neil Woodyer be appointed as chief executive officer of the company and lead a new management team based in Vancouver, B.C. These management changes will also be effected at the time of the satisfaction of the release conditions.

Mr. Woodyer, CEO of Aris Gold, commented: "Completing this equity financing is our first exciting milestone toward building Aris Gold into an Americas-focused precious metals producer. We are working closely with the Caldas Gold team on plans for advancing the Caldas mine expansion project, which includes the development of the Deeps zone mineralization and construction of a new 4,000 tpd processing facility to significantly increase gold production rates. We are also collaborating on work force training initiatives and implementation of an industry-leading sustainability program. We expect to facilitate a seamless board and management transition by early 2021."

The securities issued or issuable pursuant to the offering will be subject to a statutory hold period under applicable Canadian securities laws expiring on April 4, 2021.

Interest of Gran Colombia

Prior to the completion of the offering, Gran Colombia owned, directly or indirectly, or exercised control or direction over, 53,435,989 common shares of Caldas Gold representing approximately 53.5 per cent of the issued and outstanding common shares prior to the offering, as well as 18,388,889 share purchase warrants entitling Gran Colombia to acquire one Caldas Gold common share at either $2.75 or $3.

Gran Colombia participated in the offering for $17-million to acquire 7,555,556 subscription receipts. Upon the conversion to common shares and warrants of all 37,777,778 subscription receipts issued in connection with the offering, Caldas Gold will have 137,577,940 common shares issued and outstanding, of which Gran Colombia will hold 60,991,545 or 44.3 per cent, on an undiluted basis.

About Caldas Gold Corp.

Caldas Gold is a Canadian junior mining company currently advancing a major expansion and modernization of its underground mining operations at its Marmato project in Caldas, Colombia. Caldas Gold also owns 100 per cent of the Juby project, an advanced exploration-stage gold project located within the Shining Tree area in the southern part of the Abitibi greenstone belt about 100 km south-southeast of the Timmins, Ont., gold camp.

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