TORONTO, Dec. 8, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has
purchased for cancellation an additional US$500,000 principal amount of
senior unsecured silver-linked notes at an average price of US$88. To
date, the Company has repurchased a total of US$1,368,000 principal
amount of senior unsecured silver-linked notes at an average price of
US$95.38 under its previously announced normal course issuer bid with
the Toronto Stock Exchange.
The Company is funding the repurchase of the Notes with the proceeds
from the sale of its silver production in order to capitalize on the
current high market prices for silver. Given the principal amount of
each Note is linked to the US$ financial equivalent of 66.7 ounces of
silver based on US$15 per ounce, buying back the Notes using the
proceeds from the Company's silver production at current spot prices of
approximately US$32 per ounce allows the Company to substantially
reduce its cost of borrowing by monetizing its silver inventories and
future production.
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 six underground mines in operation. In
addition, Gran Colombia is also developing a large-scale, open-pit gold
and silver mine at Marmato. The Company also has a highly-prospective
land position in Colombia as well as an advanced stage property in
Venezuela and earlier stage properties in Mali.
Additional information on Gran Colombia can be found on its website at 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 future
financial or operating performance of the Company and its projects.
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. Forward-looking statements
contained herein are made as of the date of this press release and Gran
Colombia disclaim, 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.