Serafino Iacono reports
CALDAS GOLD ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT OF SPECIAL WARRANTS INCREASED TO CA$50 MILLION
In connection with Caldas Gold Corp.'s previously announced bought-deal private placement of special warrants, Scotiabank and Canaccord Genuity Corp., acting as co-lead underwriters and on behalf of a syndicate of underwriters, have exercised their option to purchase an additional 2,222,222 special warrants at an issue price of $2.25 per special warrant for additional gross proceeds of approximately $5-million, bringing the aggregate gross proceeds of the offering to $50-million.
Serafino Iacono, chairman and chief executive officer of Caldas Gold, commented: "We are very pleased with the success of the offering and interest in Caldas Gold's equity, including Wheaton Precious Metals Corp. who, through their wholly owned subsidiary, Wheaton Precious Metals International Ltd., are also providing $110-million (U.S.) through a streaming transaction as part of the funding to build Colombia's next major gold mine at our Marmato project. In light of this offering, we now anticipate raising an aggregate of up to $115-million (U.S.) in the previously announced offering of units consisting of senior secured gold-linked notes and common share purchase warrants."
Caldas Gold also announced that Gran Colombia Gold Corp., the company's principal shareholder, has agreed to purchase 8,888,889 special warrants in the offering, for an aggregate subscription of approximately $20-million, to preserve its equity interest above 50 per cent. Upon the exercise or deemed exercise of the special warrants, Gran Colombia will have an approximately 53.6-per-cent equity interest in the issued and outstanding shares of Caldas Gold.
Closing of the offering is expected to occur on or about July 29, 2020, or such other date as the underwriters and Caldas Gold may agree. The net proceeds of the offering are expected to be used for the expansion of the underground mining operations at Caldas Gold's Marmato project.
The closing of the offering is subject to the completion of formal documentation, including but not limited to, the execution of an underwriting agreement with the underwriters in connection with the offering and receipt of regulatory approvals, including approval of the TSX Venture Exchange.
Caldas Gold will use commercially reasonable efforts to obtain a receipt for a short-form prospectus on or prior to Sept. 21, 2020, to qualify the common shares and warrants underlying the special warrants. Until a receipt issued for the prospectus, the special warrants (and any common shares and warrants issued on exercise thereof) will be subject to a hold period under applicable Canadian securities laws expiring on the date that is four months and a day following the closing date.
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 the department of 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 kilometres south-southeast of the Timmins gold camp.
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