Gran Colombia Closes Acquisition of Gold X Mining
Gran Colombia Gold Corp. (TSX: GCM) last night announced the closing of the acquisition of all the remaining issued and outstanding shares of Gold X Mining Corp. (TSXV: GLDX), creating a new mid-tier gold producer within the Latin America region. Before the transaction, Gran Colombia owned 9,571,158 Gold X shares, or approximately 15% of the issued and outstanding shares.
Under the terms of the acquisition, each of the remaining Gold X shares will be exchanged for 0.6948 of a Gran Colombia common share.
As a result of the acquisition, Gran Colombia gains control of the Toroparu Gold project located in Guyana, South America. The company sees the project complementing its Segovia operations in Colombia, with the company now having a combined measured and indicated gold resource estimate of 8.8 million ounces, with an additional 4.4 million ounces of gold in the inferred category.
Gran Colombia also shared that there’s approximately US$6 million of cash in Gold X at the closing of this acquisition, earmarked to further develop Toroparu. The company currently intends to update the outstanding preliminary economic assessment on the property, as well as its mineral resource estimate.
With Gran Colombia owning 100% of Gold X, the company intends to delist the Gold X shares from the TSX Venture “as soon as practicable.”
Gran Colombia Gold Corp. last traded at $5.14 on the TSX.
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