Mr. Mike Davies reports
GRAN COLOMBIA ANNOUNCES STEPS TO CONTINUE STRENGTHENING ITS BALANCE SHEET WITH PARTIAL EARLY REDEMPTIONS OF ITS LONG-TERM DEBT
Gran Colombia Gold Corp. will take steps to continue strengthening its balance sheet through permitted partial early redemptions of its long-term debt.
8.00 per cent convertible unsecured debentures due 2024
Gran Colombia announced today that it has given notice to the holders of the convertible debentures that, pursuant to the provisions of the trust indenture dated as of April 4, 2019, it will redeem $2-million aggregate principal amount of the convertible debentures in cash on April 5, 2021. The redemption amount is equal to 10 per cent of the aggregate principal amount of the convertible debentures which are currently outstanding. The redemption price will be $1,000.876712 for each $1,000 principal amount outstanding to holders of record as of Feb. 28, 2021. The redemption price is equal to the redemption amount plus accrued and unpaid interest. In accordance with the trust indenture, holders of the convertible debentures, instead of receiving the redemption price in cash, may choose to convert any or all of the convertible debentures being redeemed into common shares at the conversion price of $4.75 per share at any time prior to the redemption date. Insiders of the company, who, in total, own 9.5 per cent of the aggregate principal amount of the convertible debentures outstanding, have indicated their intention to elect to convert their portion of the redemption amount into common shares. If the full redemption amount is settled with shares, the company will issue a total of 421,052 common shares to holders of the convertible debentures.
Following the redemption, there will be $18-million aggregate principal amount of convertible debentures issued and outstanding.
8.25 per cent senior secured gold-linked notes due 2024
Currently, the aggregate principal amount of gold notes issued and outstanding is $32,637,500 (U.S.). The next regularly scheduled amortizing payment of the gold notes, amounting to $2,887,500 (U.S.), will take place on April 30, 2021, reducing the outstanding amount to $29.75-million (U.S.). The amortizing payment will include a gold premium, as applicable, based on the London PM fix as of April 15, 2021.
Gran Colombia also announced today that, pursuant to the gold notes indenture, it will complete an early optional redemption on May 3, 2021, of an additional $10-million (U.S.), equivalent to approximately 33.6 per cent of the aggregate principal amount of its gold notes outstanding, following the scheduled amortizing payment on April 30, 2021. In accordance with the gold note indenture, the early redemption price will be 104.13 per cent of the aggregate principal amount of the gold notes being redeemed plus accrued interest.
Following the amortizing payment and the early optional redemption, there will be $19.75-million (U.S.) aggregate principal amount of gold notes issued and outstanding.
Full details of the cash amounts to be paid in connection with the amortizing payment and the early redemption will be announced on or about April 15, 2021.
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 high-grade Segovia operations. Gran Colombia owns approximately 44 per cent of Aris Gold Corp., a Canadian mining company currently advancing a major expansion and modernization of its underground mining operations at its Marmato project in Colombia. Gran Colombia's project pipeline also includes an approximately 18-per-cent equity interest in Gold X Mining Corp. (Guyana -- Toroparu), an approximately 36-per-cent equity interest in Denarius Silver Corp. (Colombia -- Guia Antigua and Zancudo) and an approximately 26-per-cent equity interest in Western Atlas Resources Inc. (Nunavut -- Meadowbank).
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