Gran Colombia Gold plans to redeem 2020, 2024 convertibles on May 14

By Sarah Lizee

Olympia, Wash., April 30 – Gran Colombia Gold Corp. gave notice of its intention to redeem all of its senior secured convertible debentures due 2020 and 2024 on May 14, according to a press release.

Proceeds from the company’s previously announced debt financing will be used to fund the redemption.

As of April 30, the company had $48,022,940 of debentures due 2020 and $42,872,953 of debentures due 2024 outstanding.

The debentures will be redeemed at par plus accrued interest up to but excluding the redemption date.

Holders will not be able to convert their debentures after 4 p.m. ET on May 11.

Gran Colombia also completed the early redemption of $7,260,659 of its senior unsecured convertible debentures due in August from holders who elected to exchange their debt for cash equal to 19% of the principal amount and stock for the remaining 81%. The equity was issued at a conversion price of $1.95 per share resulting in the issuance of 3,015,966 shares.

The interest rate on the debentures increased to 5% from 1%. As of April 30, there were $34,399,642 of debentures and 28,115,533 common shares outstanding.

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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