Gran Colombia Announces CA$14 Million Investment in Caldas Gold to Fund the Juby Project Acquisition Closing on July 2, 2020

TORONTO, June 30, 2020 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today that it has acquired 7,000,000 common shares of Caldas Gold Corp. (“Caldas Gold”) in a non-brokered private placement at a price of CA$2.00 per share for a total investment of CA$14,000,000 (the “Private Placement”). The proceeds of the Private Placement will be used by Caldas Gold on July 2, 2020 to complete the acquisition of South American Resources Corp. (“SARC”). SARC has completed the acquisition of certain mining assets in Northeastern Ontario, including a 100% interest in the Juby Project and a 25% joint venture interest in certain claims adjoining the Juby Project. The common shares acquired by Gran Colombia are subject to a four-month hold period expiring on October 31, 2020.

The Juby Project is an advanced exploration-stage gold project located approximately 15 km west-southwest of the town of Gowganda and 100 km south-southeast of the Timmins gold camp within the Shining Tree area in the southern part of the Abitibi greenstone belt. Over 14,000 acres are controlled through the patented claims of the Juby Project covering 10 km strike length on the mineralized trend.

Prior to the completion of Private Placement, Gran Colombia owned, directly or indirectly, or exercised control or direction over, 37,547,100 common shares and 7,500,000 share purchase warrants of Caldas Gold (the “Warrants”), with each Warrant entitling Gran Colombia to acquire one common share of Caldas Gold.  The 37,547,100 common shares represented approximately 74.4% of the total number of issued and outstanding common shares of Caldas Gold prior to the Private Placement and if all of the Warrants were exercised, Gran Colombia would have owned, directly or indirectly, or exercised control or direction over, 45,047,100 common shares, or approximately 77.7% of the total number of issued and outstanding common shares of Caldas Gold on a partially diluted basis prior to the Private Placement.

After the completion of the Private Placement, Gran Colombia now owns, directly or indirectly, or exercises control or direction over, 44,547,100 common shares of Caldas Gold, representing approximately 77.5% of the total number of issued and outstanding common shares, resulting in a 3.1% change to Gran Colombia’s holdings of common shares of Caldas Gold. If all of the Warrants were exercised, Gran Colombia would own, directly or indirectly, or exercise control or direction over, 52,047,100 common shares, or approximately 80.1% of the total number of issued and outstanding Common Shares, resulting in an increase of 2.4% to Gran Colombia’s holdings of common shares of Caldas Gold on a partially diluted basis after the completion of the Private Placement.