Gran Colombia Gold Announces Wheaton Precious Metals Participation in Marketed Offering of Subscription Receipts Expected to Close on December 19, 2019 in Connection With the Spin-Off of Its Marmato Assets

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TORONTO, Dec. 11, 2019 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) (“Gran Colombia”) announced today that Wheaton Precious Metals International Ltd. (“Wheaton Precious Metals”) has agreed to subscribe for CA$2 million in the marketed private placement offering (the “Offering”) of subscription receipts (the “Subscription Receipts”) being led by Scotiabank, as sole bookrunner, and including Red Cloud Securities. The Offering, at a price of CA$2.00 per Subscription Receipt, is expected to close on or about December 19, 2019. Wheaton Precious Metals has been granted a right of first refusal on any metal streaming or similar transaction that may be entered into in connection with financing the Marmato expansion project.

Gran Colombia has previously announced that it intends to spin off its Marmato Mining Assets into a special purpose vehicle, Caldas Finance Corp. (“CFC”), which will in turn complete a reverse takeover transaction (the “RTO Transaction”) with Bluenose Gold Corp. (TSXV-BN.H) (“Bluenose”).  The resulting issuer is expected to be renamed Caldas Gold Corp. (“Caldas Gold”). Through the Offering, CFC is expecting to raise aggregate gross proceeds of between CA$10 million and CA$15 million in connection with the RTO Transaction.

Serafino Iacono, Executive Chairman of Gran Colombia, stated “We are very excited to have Wheaton Precious Metals, one of the largest precious metals streaming companies in the world, as an anchor investor in the new Caldas Gold as it prepares for a major capital program to expand the Marmato mining operation once it completes the prefeasibility study next year.”

Upon the satisfaction of certain release conditions (the “Release Conditions”), each Subscription Receipt shall entitle the holder to receive one common share (a “CFC Share”) and one CFC Share purchase warrant (a “CFC Warrant”). Each CFC Warrant shall entitle the holder thereof to acquire one CFC Share, subject to standard adjustment provisions, at a price of CA$3.00 per CFC Share for a period of five years from the date of closing of the Offering.  Upon closing of the RTO Transaction, all CFC Shares and CFC Warrants will automatically be exchanged for common shares and common share purchase warrants of Caldas Gold. Further details on the exchange of securities and the RTO Transaction will be provided in a subsequent press release once Bluenose and Gran Colombia enter into a definitive agreement in respect of the RTO Transaction (the “Definitive Agreement”), which is anticipated to be completed prior to the closing of the Offering.