Create New Mid-Tier Latin American Gold Producer
Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) has completed its acquisition of all of the remaining issued and outstanding common shares of Gold X Mining Corp, with the latter now becoming a direct, wholly-owned, subsidiary.
Executive Chairman, Serafino Iacono, said the deal will also see Gran Colombia gain control of the Toroparu Gold Project located in Guyana, South America.
“With the closing of the Gold X acquisition, we have created a new mid-tier Latin-American gold producer with a complementary asset portfolio including the world-class, free cash flow generating Segovia Operations located in Colombia and the large, high-growth and substantially de-risked Toroparu Gold Project in Guyana,” Mr Iacono said.
“On a combined basis for Segovia and Toroparu, our measured and indicated gold resources now total 8,778,000 ounces (256.5 Mt grading 1.06 g/t Au) and we have another 4,359,000 ounces of gold in the inferred category (132.6 Mt grading 1.02 g/t Au).
“Over the next couple of months, we will be refining our development options at Toroparu, including an update of the mineral resource estimate for the Toroparu Project to incorporate the new geologic model and project optimisation that includes the discovery of continuous high-grade gold bearing structures extending for at least three kilometres in strike and at least 450 meters in depth as recently announced by Gold X.
“With approximately US$6 million of cash in Gold X at closing of this acquisition, this next stage of project evaluation that will lead to an updated preliminary economic assessment for Toroparu is fully funded.
“We are very excited to begin this next chapter, creating value for our shareholders through our diversified growth platform centered on these two cornerstone assets and our equity positions in Aris Gold and Denarius.”
With Gold X now a wholly-owned subsidiary of Gran Colombia, Gran Colombia intends to de-list the Gold X Shares from the TSX Venture Exchange as soon as practicable. Gran Colombia also intends to submit an application to the applicable securities regulators to have Gold X cease to be a reporting issuer and terminate its public reporting obligations. Prior to the completion of the Arrangement, Gran Colombia owned approximately 15% of the issued and outstanding Gold X Shares prior to the completion of the Arrangement.
Gran Colombia is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the Company is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations.
In Guyana, the company is advancing the Toroparu Project, one of the largest undeveloped gold projects in the Americas. Gran Colombia also owns approximately 44% of Aris Gold Corporation, a Canadian mining company currently advancing a major expansion and modernization of its underground mining operations at its Marmato Project in Colombia.
