Mr. Mike Davies of Gran Colombia reports
GRAN COLOMBIA GOLD INCREASES INTEREST IN WESTERN ATLAS RESOURCES TO APPROXIMATELY 25.8%
Gran Colombia Gold Corp.'s equity position in Western Atlas Resources Inc. has increased to approximately 25.8 per cent through a non-brokered private placement completed on July 17, 2020, by Western Atlas. Western Atlas intends to use the proceeds of the private placement for exploration of its Meadowbank project in Nunavut, for seeking restitution of the Increible project, for the potential addition to its exploration portfolio and for general administrative purposes.
The private placement comprised a total of 35.9 million units at a price of 10 cents per unit, for gross proceeds of approximately $3.59-million. The private placement involved the sale of both flow-through units and non-flow-through units. The company purchased 14 million NFT units for an aggregate investment of $1.4-million. Each NFT unit issued in the private placement consists of one non-flow-through common share and one non-flow-through common share purchase warrant entitling the holder to purchase one additional share at 15 cents for a period of 24 months.
Through completion of the private placement, the company has increased its holdings in Western Atlas to an aggregate of 29,910,588 common shares and 21,955,294 common share purchase warrants. The common shares controlled by the company represent approximately 25.8 per cent of outstanding common shares of Western Atlas. Assuming exercise of warrants, the company, when combined with its existing ownership, would have control or direction over 51,865,882 common shares, representing approximately 30.9 per cent of the then outstanding common shares of Western Atlas on a partially diluted basis.
The additional shares and warrants were acquired for investment purposes, and the company has no present intention to dispose of or acquire further securities of Western Atlas, although the company may in the future acquire or dispose of securities of Western Atlas, through the market, privately or otherwise, as circumstances or market conditions warrant.
Copies of the early warning report filed by Gran Colombia will be available under Western Atlas's profile on SEDAR or by contacting Gran Colombia directly.
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 58 per cent of Caldas 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 includes its Zancudo project in Colombia, together with an approximately 20-per-cent equity interest in Gold X Mining Corp. and an approximately 26-per-cent equity interest in Western Atlas.
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