Gran Colombia Gold announces partial redemptions on convertible debt

Chicago, March 10 – Gran Colombia Gold Corp. announced that it will be partially redeeming some long-term debt, according to a press release.

The company will redeem an aggregate principal amount of C$2 million of its 8% convertible debentures in cash on April 5.

The redemption amount represents 10% of the amount outstanding.

Each C$1,000 convertible notes will be redeemed for C$1,000.876712, plus interest.

Debenture holders may also elect to convert their debentures into common shares at a conversion price of C$4.75 per share at any time before the redemption date.

Company insiders own 9.5% of the aggregate principal amount of the notes. They have indicated their intention to convert their portion of the notes into shares.

Should the entire amount be settled in shares, the company would issue 421,052 shares.

After the redemption there will be C$18 million principal amount of convertibles outstanding.

The company aims to strengthen its balance sheet through the redemptions.

Gran Colombia Gold is a Toronto-based gold and silver exploration, development and production company with its primary focus in Colombia.

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