Caldas Gold Announces Bought Deal Private Placement of Special Warrants Increased to CA$50 Million

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TORONTO, July 22, 2020 (GLOBE NEWSWIRE) -- Caldas Gold Corp. (“Caldas Gold” or the “Company”) (TSX-V: CGC) announced today that, in connection with its previously announced bought deal private placement of special warrants (the “Special Warrants”), Scotiabank and Canaccord Genuity Corp., acting as co-lead underwriters and on behalf of a syndicate of underwriters (collectively, the “Underwriters”), have exercised their option to purchase an additional 2,222,222 Special Warrants at an issue price of CA$2.25 per Special Warrant (the “Issue Price”) for additional gross proceeds of approximately CA$5,000,000, bringing the aggregate gross proceeds of the offering to CA$50,000,000 (the “Offering”).

Serafino Iacono, Chairman and CEO of Caldas Gold, commented, “We are very pleased with the success of the Offering and interest in Caldas Gold’s equity, including Wheaton Precious Metals Corp. who, through their wholly owned subsidiary, Wheaton Precious Metals International Ltd., are also providing US$110 million through a streaming transaction as part of the funding to build Colombia’s next major gold mine at our Marmato Project. In light of this Offering, we now anticipate raising an aggregate of up to US$115 million in the previously announced offering of units consisting of senior secured gold-linked notes and common share purchase warrants.”

Caldas Gold also announced that Gran Colombia Gold Corp. (“Gran Colombia”), the Company’s principal shareholder, has agreed to purchase 8,888,889 Special Warrants in the Offering, for an aggregate subscription of approximately CA$20 million, to preserve its equity interest above 50%. Upon the exercise or deemed exercise of the Special Warrants, Gran Colombia will have an approximately 53.6% equity interest in the issued and outstanding shares of Caldas Gold.

Closing of the Offering is expected to occur on or about July 29, 2020, or such other date as the Underwriters and Caldas Gold may agree. The net proceeds of the Offering are expected to be used for the expansion of the underground mining operations at Caldas Gold’s Marmato Project.

The Closing of the Offering is subject to the completion of formal documentation, including but not limited to, the execution of an underwriting agreement with the Underwriters in connection with the Offering and receipt of regulatory approvals, including approval of the TSX Venture Exchange.