Gran Colombia Gold (TSX: GCM) this morning announced the diversification of its asset portfolio. The company has acquired a 36% stake in that of Denarius Silver Corp (TSXV: DSLV), a new issuer on the TSX Venture.
The stake in the company follows the sale of certain Zancudo Mining assets, as per a a purchase agreement entered into by the company back on November 20, 2020. The transaction saw the sale of the firms Gran Colombia Gold Titiribi Corp assets for a total figure of $12.2 million, which was satisfied via the issuance of 27.0 million common shares at a price of $0.45 per common share.
That transaction formally closed on Friday, in connection with the completion of Denarius’ reverse-takeover transaction. Notably, Gran Colombia also invested in the associated private placement offering, having acquired 6.67 million subscription receipts of the company at a cost of roughly $3.0 million, with receipts sold at a price of $0.45 per each.
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In total, Gran Colombia has holdings in the new firm, which is to begin trading March 1, 2021, consisting of a total 33.67 million shares, good for a 36.15% stake in the firm.
Gran Colombia Gold last traded at $5.91 on the TSX.
Information for this briefing was found via Sedar and Gran Colombia Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
