Mr. Serafino Iacono reports
GRAN COLOMBIA GOLD LAUNCHES NORMAL COURSE ISSUER BID FOR ITS COMMON SHARES
Gran Colombia Gold Corp. has filed with the Toronto Stock Exchange, and the TSX has accepted, a notice of intention to make a normal course issuer bid (NCIB) for its common shares trading under the symbol GCM. The NCIB will allow the company to purchase for cancellation up to 5,934,811 shares of the company over a 12-month period, representing 10 per cent of the current issued and outstanding shares in the public float as of Aug. 31, 2020. As at Aug. 31, 2020, the company had 61,941,229 common shares issued and outstanding.
Commenting on the announcement, Serafino Iacono, executive chairman, stated: "We continue to see significant potential upside in the rerating of our share price. In addition to the recently announced quarterly dividend, the NCIB is an important component of our value creation strategy as the repurchase of shares using our free cash flow provides a permanent favourable impact to our earnings and cash-flow-per-share metrics. Based on our expectation for continued strong operating and financial results, as well as the enhanced value of our investments in Caldas Gold, Gold X Mining and Western Atlas and the substantial exploration potential we have at Segovia and Zancudo, we plan to use the NCIB over the next year to support continued value creation for our shareholders."
The NCIB will commence on Sept. 4, 2020, and terminate on Sept. 3, 2021, or such earlier date on which purchases under the NCIB have been completed. Purchases of shares under the NCIB will be made through the facilities of the TSX or other alternative Canadian trading systems at the market price of the shares at the time of acquisition. The average daily trading volume of the shares for the six months ended Aug. 31, 2020, is 614,084 shares. Daily purchases will be limited to 153,521 shares, other than block purchase exceptions. Shares purchased under the NCIB will be cancelled. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the company sought and received approval from the TSX to purchase up to 4,589,129 shares, the company purchased 56,000 shares for cancellation through the facilities of the TSX at a volume-weighted average trading price of $3.42 per share during the period from June 12, 2019, to June 11, 2020.
Gran Colombia has entered into an automatic share purchase plan with a broker in connection with the NCIB to allow for the purchase of shares during certain predetermined blackout periods. Outside of these predetermined blackout periods, shares will be purchased at the discretion of senior management of Gran Colombia.
Gran Colombia believes that the shares may from time to time trade in a price range that does not adequately reflect the value of the shares in relation to its activities and future prospects. Accordingly, the board of directors of Gran Colombia has determined that the repurchase of shares pursuant to the NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of the company's shareholders.
About Gran Colombia Gold Corp.
Gran Colombia is a Canada-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 57.5 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. 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. (Guyana: Toroparu) and an approximately 26-per-cent equity interest in Western Atlas Resources Inc. (Nunavut: Meadowbank).
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