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TORONTO, Feb. 05, 2018 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (the “Company” or “Gran Colombia”) (TSX:GCM)
announced today that it has determined to offer for sale, on a best efforts private placement basis, up to 152,000 units (the
“Units”) of the Company for anticipated aggregate gross proceeds of up to US$152,000,000 (the “Offering”). Each Unit is expected to
consist of US$1,000 principal amount of senior secured gold-linked notes (the “Notes”) and a number of common share purchase
warrants of the Company to be determined based on market conditions. The Company has retained GMP Capital Inc. (“GMP”) and
UBS Securities LLC (“UBS” and collectively with GMP, the “Agents”) to act as agents in connection with the Offering.
The net proceeds of the Offering are expected to be used for (1) the redemption in full, at par, of the
Company’s (a) Senior Unsecured Convertible Debentures due 2018, (b) Senior Secured Convertible Debentures due 2020 and (c) Senior
Secured Convertible Debentures due 2024 (the securities referred to in (a), (b) and (c), collectively, the “Outstanding
Debentures”) and (2) general corporate purposes.
The terms of the Offering are subject to finalization based on market conditions. Subject to the final terms of
the Offering, the completion of the Offering may be subject to the receipt of regulatory and shareholders’ approvals. Timing for
the closing of the Offering and any requisite shareholders’ meeting will be announced by the Company at a later date.
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 continuing its expansion and modernization
activities at its high-grade 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.
Cautionary Statement on Forward-Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements
with respect to the Offering, including the expected timing and receipt of any required regulatory and shareholders’
approvals, the expected use of proceeds, the redemption of the Outstanding Debentures, the anticipated improvement to the Company’s
capital structure and reduction of potential dilution, anticipated business plans or strategies. Often, but not always,
forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Gran Colombia to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially
from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's
Annual Information Form dated as of March 30, 2017, which is available for view on SEDAR at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by
law, any obligation to update any forward-looking statements whether as a result of new information, results, future events,
circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Please Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com