Business
Gran Colombia Gold announces pricing of US$100 million of units to finance expansion of gold production at its Segovia Operations
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITE...
About this update from Aris Mining Corp
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nTORONTO, Oct. 22, 2012 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) is pleased to announce that it has priced the previously announced\n offering (see Company press release dated September 20, 2012) of US$100\n million aggregate principle amount of units (the \"Offering\"). Each unit\n of the Offering will consist of one US$1,000 face amount secured, 10%\n gold-linked note (the \"Notes\") and 250 common share purchase warrants.\n Collectively, holders of the Notes will have a notional call on the\n U.S. dollar financial equivalent of approximately 71,429 ounces of gold\n (the \"Implied Gold Ounces\") at a notional price of US$1,400 per ounce.\n\n\nSerafino Iacono, Executive Co-Chairman of Gran Colombia commented, \"The\n successful pricing of this Offering is a very important step in our\n Company's transformation.  The Pampa Verde Project, with a new plant\n and modern, mechanized underground mine, will allow us to grow our\n annual production to 200,000 ounces of gold and to reduce the cash\n costs at our Segovia Operations. We were very pleased by the response\n to this transaction; the support of current and new investors conveys\n the high degree of confidence in our continued growth and strategic\n long-term plan.\"\n\n\nThe Notes will bear interest at a rate of 10% per year, accruing and\n payable monthly in arrears on the last business day of every month. The\n first interest payment date is November 30, 2012 and will consist of\n interest accrued from and including the closing date. The Notes will\n mature on the first business day that is five years after the closing\n date (the \"Maturity Date\") and will entitle the holder thereof to\n receive the greater of: (i) the U.S. dollar financial equivalent of\n approximately 0.7143 ounces of gold per Note (which is based on a\n notional price of US$1,400 per gold ounce) plus any accrued interest in\n cash, and (ii) the U.S. dollar face amount of the Note plus any accrued\n interest in cash.\n\n\nThe Noteholders shall have the option to require the Company to purchase\n up to US$6.25 million aggregate face amount of the Notes at the end of\n each three-month period beginning on the 25th month through the 57th\n month after the issue date, with principal ...