Gran Colombia completes acquisition of Gold X Mining
Gran Colombia Gold Corp. [GCM-TSX; TPRFF-OTCQX] completed its acquisition of all of the issued and outstanding common shares of Gold X Mining Corp. [GLDX-TSXV; GLDXF-OTCQX] not already owned by Gran Colombia by way of a statutory plan of arrangement. The arrangement became effective at 12:01 a.m. Pacific Time on June 4, 2021. As a result, Gold X became a direct, wholly-owned subsidiary of Gran Colombia and Gran Colombia gained control of the Toroparu gold project in Guyana, South America.
Serafino Iacono, executive chairman of Gran Colombia, commented: “With the closing of the Gold X acquisition today, 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. On a combined basis for Segovia and Toroparu, Measured and Indicated gold resources now total 8,778,000 ounces (256.5 million tonnes grading 1.06 g/t gold) and we have another 4,359,000 ounces of gold in the Inferred category (132.6 million t grading 1.02 g/t gold).
“Over the next couple of months, we will be refining our development options at Toroparu, including an update of the resource estimate for the Toroparu project to incorporate the new geologic model and project optimization that includes the discovery of continuous high-grade gold-bearing structures extending for at least three kilometres in strike and at least 450 metres 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 centred on these two cornerstone assets and our equity positions in Aris Gold and Denarius.”
Under the arrangement, each holder of Gold X shares is entitled to receive 0.6948 of a common share of Gran Colombia for each Gold X share held immediately prior to the effective time.
As of today, the company now has 98,287,088 common shares issued and outstanding and a total of approximately 132.1 million common shares fully diluted.
With Gold X now a wholly owned subsidiary of Gran Colombia, Gran Colombia intends to delist the Gold X shares from the TSX Venture Exchange. Prior to the completion of the arrangement, Gran Colombia owned, directly or indirectly, or exercised control or direction over, 9,571,158 Gold X shares, representing approximately 15% of the issued and outstanding Gold X shares prior to the completion of the arrangement.
In Colombia, the company is 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.