Gran Colombia Gold (TSX:GCM, StockForum), a Toronto-based mineral exploration and production firm engaged in the acquisition, exploration, development and operation of Canadian gold and silver properties, announced today that the company had filed an amended and re-stated preliminary prospectus in all the provinces except Quebec, that is intended to alter the prospectus originally filed on November 19, 2013.
The amendments are meant to reflect recent developments with the company announced in a press release dated February 3, 2014 including a change in management and a re-direction of a portion of the gross proceeds to repay a previously announced bridge loan.
According to the news release, the remainder of the offering's proceeds are intended to maintain the company's financial malleability while improving cash flow, growing production and expanding resources at Segovia project.
Gran Colombia's amended prospectus is filed in connection with the “best efforts” offering of a minimum of $7.0 million up to a maximum of $15.0 million of units with each unit consisting of one common share and one-half of one common share purchase warrant. The holder of the warrant is able to exercise it at a yet-to-be-determined price for up to five years after close.
Warrants issued in this offering are subject to an accelerated expiration date under certain circumstances, while agents will have an option to purchase additional units from the company up to a number equal to 15% of the units issued under the offering.
This transaction is still subject to TSX regulatory approval and is based on the execution of a definitive agreement between the company and the agent.
Gran Colombia Gold was in the news recently when the company announced company re-structuring and cost reductions at the top of the month.
Shares rose 16.92% on the news to $3.80 per share.
Currently there are 15.3m outstanding shares with a market cap of $58.1 million.