/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, March 18, 2014 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) (the
"Company" or "Gran Colombia") is pleased to announce today that it has
successfully completed its previously announced equity offering of
8,423,837 units of Gran Colombia (the "Units") at a price per Unit of
C$1.93 for aggregate gross proceeds to the Company of C$16,258,005 (the
"Offering"), underwritten by GMP Securities L.P. Each Unit consists of
one common share in the capital of the Company and one-half of one
common share purchase warrant. The Offering was completed pursuant to a
short form prospectus dated February 28, 2014.
The Offering includes the exercise in part by the underwriter of the
over-allotment option for an additional 923,837 Units representing
C$1,783,005 in additional gross proceeds to the Company.
The Company intends to use a portion of the net proceeds of the Offering
to repay the previously announced bridge loan. The balance of the net
proceeds will be used to maintain the financial flexibility of the
Company, including the funding of efforts to improve operating cash
flow, grow production and expand resources at the Segovia project.
Blue Pacific Assets Corp. ("Blue Pacific"), an investment company in
which three directors of the Company together indirectly hold a
majority share, has subscribed for 2,211,442 Units pursuant to the
Offering. This increases Blue Pacific's beneficial ownership in the
Company to approximately 14.9% of the issued and outstanding shares in
the capital of the Company on a non-diluted basis.
The securities offered have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any U.S. State securities laws and may not be offered or
sold, directly or indirectly, within the United States or its
territories or possessions or to or for the account of any U.S. person
(as defined in Regulation S under the U.S. Securities Act) other than
pursuant to an available exemption from the registration requirements
of the U.S. Securities Act. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any such securities
within the United States, or its territories or possessions, or to or
for the account of any U.S. person.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration,
development and production Company with its primary focus in Colombia.
Gran Colombia is currently the largest underground gold and silver
producer in Colombia with several underground mines in operation at its
Segovia and Marmato Operations. Gran Colombia is currently advancing a
project to develop a modern, large-scale, gold and silver mine at its
Segovia operations.
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
SOURCE Gran Colombia Gold Corp.
