Gran Colombia Gold Completes Acquisition of Approximately 15% Interest in Sandspring Resources Ltd.
July 26 2018 - 6:30AM
Gran Colombia Gold Corp. (TSX:GCM) announced today that it has
completed its previously announced acquisition of an investment in
Sandspring Resources Ltd. (TSX-V:SSP) (OTCQX:SSPXF) (“Sandspring”)
(the “Transaction”). Sandspring is a Canadian junior mining company
currently moving toward a feasibility study for the
multi-million-ounce Toroparu Project in the emerging western Guyana
gold district. In connection with the Transaction, Lombardo Paredes
Arenas, Chief Executive Officer of Gran Colombia, has been
appointed to the board of Sandspring, effective immediately.
Through completion of the Transaction, Gran
Colombia has received 15,000,000 common shares of Sandspring in
consideration for its 30% carried participating interest in the
Chicharron Project located within its Segovia mining title.
Gran Colombia has acquired a further 16,000,000 Units of Sandspring
at CA$0.25 per Unit in connection with Sandspring’s CA$10.25
million private placement of 41,000,000 Units completed
today. Following completion of the Transaction and the
private placement, Gran Colombia now has control and direction over
an aggregate of 31,000,000 common shares and 16,000,000 share
purchase warrants of Sandspring. Each share purchase warrant
entitles Gran Colombia to purchase one additional share of
Sandspring at CA$0.40 for a period of sixty (60) months. The
securities acquired in connection with the private placement are
subject to a four-month-and-one-day statutory hold period.
The common shares controlled by Gran Colombia represent
approximately 14.78% of the outstanding common shares of
Sandspring. Assuming exercise of just the warrants controlled by
Gran Colombia, when combined with its existing ownership, Gran
Colombia would have control and direction over 47,000,000 common
shares representing approximately 20.83% of the then outstanding
common shares of Sandspring.
Serafino Iacono, Executive Co-Chairman of Gran
Colombia, commented, “We are pleased to have closed this investment
in Sandspring. From our previous experience in the Guiana Shield
and the work we have completed in our due diligence process, we see
opportunity in their Toroparu Project and we look forward to
assisting management in taking this project to the next level.”
Gran Colombia has acquired the securities of
Sandspring for investment purposes and has no present intention to
acquire further securities of Sandspring, although Gran Colombia
may in the future acquire or dispose of securities of Sandspring,
through the market, privately or otherwise, as circumstances or
market conditions warrant.
Copies of the early warning report filed by Gran
Colombia in connection with completion of the Transaction and the
private placement are available under Sandspring’s profile on SEDAR
(www.sedar.com) or by contacting Gran Colombia directly.
About Gran Colombia Gold
Corp.
Gran Colombia is a Canadian-based gold and
silver exploration, development and production company with its
primary focus in Colombia. Gran Colombia is currently the largest
underground gold and silver producer in Colombia with several
underground mines in operation at its Segovia and Marmato
Operations. Gran Colombia is continuing to focus on exploration,
expansion and modernization activities at its high-grade Segovia
Operations.
Additional information on Gran Colombia can be
found on its website at www.grancolombiagold.com and by reviewing
its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to production guidance and anticipated business plans
or strategies. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Gran Colombia to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Factors that could cause actual
results to differ materially from those anticipated in these
forward-looking statements are described under the caption "Risk
Factors" in the Company's Annual Information Form dated as of March
27, 2018, which is available for view on SEDAR at www.sedar.com.
Forward-looking statements contained herein are made as of the date
of this press release and Gran Colombia disclaims, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
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