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Caldas Gold Corp
Symbol CGC
Shares Issued 50,495,441
Close 2020-06-30 C$ 2.67
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Gran Colombia acquires 7M Caldas Gold shares

2020-06-30 19:15 ET - News Release

See News Release (C-GCM) Gran Colombia Gold Corp (4)

Mr. Mike Davies of Gran Colombia reports

GRAN COLOMBIA ANNOUNCES CA$14 MILLION INVESTMENT IN CALDAS GOLD TO FUND THE JUBY PROJECT ACQUISITION CLOSING ON JULY 2, 2020

Gran Colombia Gold Corp. has acquired seven million common shares of Caldas Gold Corp. in a non-brokered private placement at a price of $2 per share for a total investment of $14-million. The proceeds of the private placement will be used by Caldas Gold on July 2, 2020, to complete the acquisition of South American Resources Corp. (SARC). SARC has completed the acquisition of certain mining assets in Northeastern Ontario, including a 100-per-cent interest in the Juby project and a 25-per-cent joint venture interest in certain claims adjoining the Juby project. The common shares acquired by Gran Colombia are subject to a four-month hold period expiring on Oct. 31, 2020.

The Juby project is an advanced-exploration-stage gold project located approximately 15 kilometres west-southwest of the town of Gowganda and 100 kilometres south-southeast of the Timmins gold camp within the Shining Tree area in the southern part of the Abitibi greenstone belt. Over 14,000 acres are controlled through the patented claims of the Juby project, covering 10 kilometres of strike length on the mineralized trend.

Prior to the completion of private placement, Gran Colombia owned, directly or indirectly, or exercised control or direction over, 37,547,100 common shares and 7.5 million share purchase warrants of Caldas Gold, with each warrant entitling Gran Colombia to acquire one common share of Caldas Gold. The 37,547,100 common shares represented approximately 74.4 per cent of the total number of issued and outstanding common shares of Caldas Gold prior to the private placement, and, if all of the warrants were exercised, Gran Colombia would have owned, directly or indirectly, or exercised control or direction over, 45,047,100 common shares, or approximately 77.7 per cent of the total number of issued and outstanding common shares of Caldas Gold on a partially diluted basis prior to the private placement.

After the completion of the private placement, Gran Colombia now owns, directly or indirectly, or exercises control or direction over, 44,547,100 common shares of Caldas Gold, representing approximately 77.5 per cent of the total number of issued and outstanding common shares, resulting in a 3.1-per-cent change to Gran Colombia's holdings of common shares of Caldas Gold. If all of the warrants were exercised, Gran Colombia would own, directly or indirectly, or exercise control or direction over, 52,047,100 common shares, or approximately 80.1 per cent of the total number of issued and outstanding common shares, resulting in an increase of 2.4 per cent to Gran Colombia's holdings of common shares of Caldas Gold on a partially diluted basis after the completion of the private placement.

In connection with the acquisition of SARC, Caldas Gold will issue 20 million common shares to current shareholders of SARC, and will have financed SARC's acquisition of the Juby project and adjoining claims. Certain shareholders of SARC have entered into voluntary lock-up agreements with Caldas Gold, pursuant to which such securityholders, holding approximately 87 per cent of the consideration shares, have agreed to voluntarily lock up their consideration shares for a period of two years from the closing date of the transaction. No insiders of Caldas Gold or Gran Colombia will receive any of the consideration shares. Following the acquisition of SARC, Gran Colombia will have a 57.5-per-cent equity interest in the issued and outstanding shares of Caldas Gold.

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 77 per cent of Caldas Gold, a Canadian mining company currently advancing a prefeasibility study for a major expansion and modernization of its underground mining operations at its Marmato project in Colombia.

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