Sprott Sells Majority of Stake In Gran Colombia Gold

Eric Sprott has continued to sell off his holdings in Gran Colombia Gold Corp (TSX: GCM). It was revealed last night via an early warning filing made on Sedar that Sprott has sold an additional 4,335,999 common shares of the issuer, which represents approximately 7.0% of the outstanding shares of the company. The sale follows a smaller sale of 200,000 common shares made by Sprott at the end of July.

The latest sale conducted by Sprott, which was conducted through his numbered company 2176423 Ontario Ltd, was done at an average price of $6.5063 per share. Gross proceeds from the sale totaled out at $28, 211,310.

Following the share sale, Sprott has just 100,000 common shares left of the issuer, in addition to 6,832,319 common share purchase warrants, all of which are believed to currently be in the money at exercise prices ranging from $5.40 to $6.50.

Sprott originally acquired his position in Gran Colombia beginning late last year, when he purchased 3,260,870 units of the issuer in a private placement at $4.60 per share. At the time, each unit came with one common share and one common share purchase warrant, with an expiry of 4 years and a conversion price of $5.40 per share.

He then increased his position back in February 2020, when he acquired a further 3,571,429 units of the company in yet another placement. Each unit was acquired at $5.60, and contained one common share and one common share purchase warrant. The warrant this time had an expiry of 3 years, and an exercise price of $6.50 per share. At the close of this financing, Sprott owned 11.24% of the company on a non-diluted basis, and 20.2% on a partially diluted basis.

Now however, following his latest share sales, Sprott beneficially owns just 0.2% of the company on a non-diluted basis, and 10.1% on a partially diluted basis – meaning he is just 0.2% away from not having to file early warning reports any longer.

Justification for the share dispositions were not provided.

Gran Colombia Gold last traded at $6.60 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.

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