- Gran Colombia Gold (GCM) will acquire all of the issued and outstanding common shares of Gold X Mining (GLDX)
- Gran Colombia currently owns approximately 18 per cent of the outstanding Gold X Shares
- The combined company will have approximately US$100 million in cash
- The companies are working towards closing the transaction in late May or early June 2021
- Gran Colombia is down 9.69 per cent on the day, with shares trading at C$5.59 at 12:52pm ET
Gran Colombia Gold (GCM) will acquire all of the issued and outstanding common shares of Gold X Mining (GLDX).
This does not include the shares already owned by Gran Colombia.
Gran Colombia currently owns 9,571,158 shares of Gold X, or approximately 18 per cent of the Gold X Shares outstanding.
Once finalized, the deal will allow the newly-merged companies to focus on developing the Toroparu Gold Project.
The Toparu Gold Project land package remains predominantly unexplored.
The combined company will have approximately US$100 million in cash, greater access to equity and debt capital markets, financing support from Wheaton Precious Metals as well as free cash flow from Gran Colombia’s Segovia Operations.
“We are pleased to present this arrangement to the shareholders of Gran Colombia and Gold X. Creating long-term value for our shareholders is at the core of our strategy. The contemplated acquisition will provide Gran Colombia with an opportunity to add a large-scale, long-life Latin American gold development project to its portfolio. When this transaction is consummated, the Toroparu Gold Project will join our Segovia Operations as cornerstones of our long-term growth strategy,”said Gran Colombia Executive Chairman Serafino Iacono.
Gold X plans to call a meeting in May to seek shareholder approval.
The companies are working towards closing the transaction in late May/ early June 2021.
Gran Colombia is down 9.69 per cent on the day, with shares trading at C$5.59 at 12:52pm ET.
