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Gran Columbia (GCM.t) : 235,000 oz/yr Gold miner

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UPDATED in late Sept.

GCM group: YTD.: 10d /  GCM: $6.28, wtB: $4.15, CGC: $2.85: GLDX: $3.65, ESV.h: $0.56, WA: $0.155 @ 9.24.20

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(Adding ESV in late Sept., "Group" valuations may look like this):

Gran Colombia related Companies & Enterprise Value of Deposit - (4/16/2020 framework) @ 9/24/2020

Company —————  (symbol) $ Price: shsOS: MktCap. : Gcm%: $-Value  (%GCM): 02/24: vs. Old Peak Val.

Caldas Gold Corp.    (CGC.t. ) : C$2.85: 106.M: $302.1M: x57% : $172.2M: (44.3%): C$2.00: $212.0M, $157M
Gold X Mining Corp. (GLDX.v): C$3.65: 58.9M: $215.0M: x21% : $45.15M: (11.6%): C$2.34: $137.8M, $  29M
"Denarius Silver".      (ESV.h.v): C$0.56: 71.2M: $  39.9M: x47% : $ 18.75M: ( 4.8%): C $0,00: $. 0.00M, $  00M
Western Atlas Res.  (WA.v.   ) : C$.155: 80.0M: $  12.4M: x20% : $. 2.48M:  ( 0.6%): C$.085:  $ 6.80M, $ 1.4M
=== : Four GCM co’s  ====== :  =====:  =====:  $569.4M: ==== : $238.6M: (61.4%) =====> : ======> $187M (44%)
Gran Colombia Gold (GCM.t): C$6.28: 61.9M : $388.7M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)
--------- vs. 4/16/2020 (GCM.t): C$5.70: 60.8M : $346.6M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)

Wow.  Over 60% (ie 61.4%) of GCM's MktCap is covered by investments in these four companies

(Original Post):  GCM Weak... and cheap? (vs. GDXJ)

GCM "group": vs. wtB, GLDX, CGC ... update: 74.4% interest in Caldas Gold Corp.

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TPRFF (Usd quote for GCM.t) to GDXJ Ratio: 0.25%

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==

Gran Colombia Gold (TSX: GCM; Otc-QX: TPRFF) is a Canadian-based mid-tier gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. Gran Colombia owns approximately 57.5% of Caldas Gold Corp., a Canadian mining company currently advancing a major expansion and modernization of its underground mining operations at its Marmato Project in Colombia. Gran Colombia’s project pipeline includes its Zancudo Project in Colombia together with an approximately 20% equity interest in Gold X Mining Corp. (TSXV: GLDX) (Guyana – Toroparu) and an approximately 26% equity interest in Western Atlas Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).

The company's balance sheet remained solid with total cash of $87.7-million at the end of June, 2020, and further reduction in the aggregate principal amount of gold notes outstanding to $41.3-million.

  • The Gold Notes are recorded in the Interim Financial Statements at fair value. At June 30, 2020 and December 31, 2019, the carrying amounts of the Gold Notes outstanding were $43.5 and $69.0 million, respectively.
  • The Convertible Debentures are recorded in the Interim Financial Statements at fair value. At June 30, 2020 and December 31, 2019, the carrying amount of the Convertible Debentures outstanding was $23.7 million and $21.1 million, respectively.
  • Net of income taxes paid of $35.3 million in the second quarter of 2020 ($14.1 million in the second quarter of 2019) and $42.6 million in the first half of 2020 ($30.4 million in the first half of 2019).

Caldas Gold (CGC,t): 57.5%

Gold X  ( GLDX.v)
At June 30, 2020, the Company holds a 19.1% (December 31, 2019 – 20.7%) equity interest in Gold X, a Canadian junior mining company currently moving toward a feasibility study for its Toroparu Project in the western Guyana gold district. During the three and six months ended June 30, 2020, the Company recorded a loss in its investment in Gold X of $1.5 million and $2.1 million, respectively, (three and six months ended June 30, 2019 - $0.1 million and $0.2 million, respectively).  As at June 30, 2020 and December 31, 2019, the Company owned a total of 7,312,500 common shares and 4,625,000 share purchase warrants (the “Gold X Warrants”) of Gold X.

Gran Colombia related Companies & Enterprise Value of Deposit - @ 4/16/2020 framework @ 7/31/2020

Company —————  (symbol) $ Price: shsOS: MktCap. : Gcm%: $-Value  (%GCM): 02/24: vs. Old Peak Val.

Caldas Gold Corp.    (CGC.t. ) : C$2.61: 106.M: $276.7M: x74% : $204.8M: (47.4%): C$2.00: $212.0M, $157M
Gold X Mining Corp. (GLDX.v): C$3.76: 58.9M: $221.5M: x21% : $46.52M: (10.8%): C$2.34: $137.8M, $  29M
Western Atlas Res.  (WA.v.   ) : C$0.16: 80.0M: $  12.8M: x20% : $.  2.56M:  ( 0.6%): C$.085:  $ 6.80M, $ 1.4M
===: Three GCM co’s ====== :  =====:  =====:  $338.1M: ==== : $253.9M: (58.4%) =====> : ======> $187M (44%)
Gran Colombia Gold (GCM.t): C$7.10: 60.8M : $431.7M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)
--------- vs. 4/16/2020 (GCM.t): C$5.70: 60.8M : $346.6M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)

Enterprise Value of the Segovia deposit: @$7.10, $1968 Gold (0.36%)
Market Cap: C$431.7M: GCM.t
Fully Diluted C$583.3M: 88.7M x$7.10=C$ -Cash inflow, exer. ($46.5M)
Compare:
Cash, est.   : C$110.3M:
Three co’s  : C$253.9M:
Debt — —   : ( C$83.5M):
Abv.Items :  C$280.7M: (48.1%)
Ent.Value :  C$302.6M:  51.9% /C$1.341=
======== : US$225.7 M / $1968 -1000 Cost: /$968= 233.1k Oz, prev: 298k, 184k Oz
> 233.1k Oz. vs. 670k oz reported Reserves (34.8%)
4/16> 298.2k Oz. vs. 670k oz reported Reserves (44.5%) / prev. was 27.4% (4.01.20)
4/16: Value of the Segovia deposit: @$5.70, $1732 Gold (0.33%) Gold
Notes:
Cash US$84.2M + $20M.est.Q1 -$26.5M= US$77.7 x1.42= $110M
Debs US$68.8M (-$24.1M prepay=$44.7Mx1.42= C$63.5M)+Cv.Debs. C$20= C$83.5M
Exer.: wts.: 12M xC$2.21= C$26.5M + CvDebs: $20M = C$46.5M, ignored options 

Note: At 100% of Segovia Ounces, the stock would be at C$13.62

Compare:   34.8%.  :     50%    :    65%   :   100%.  :  > pct of Segovia's Gold
Ounces   : 233.1koz : 339.5koz  679k oz : 679k oz :
x $968.   : $225.7M : $328.6M: $441.4M: $657.3M:
xC$1.341: $302.6M: $440.7M: $591.5M: $881.4M:
Addbacks: $280.7M: $280.7M: $280.7M: $280.7M:
MkCap.fd: $583.3M: $721.4M : $872.2M: $1,162M:
+$46.5M : $629.8M: $767.9M : $918.7M: $1,208M:
/88.7M sh:  $7.10.  :   $ 8.66   :  $ 10.36  : $ 13.62. :

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=  : PRODUCTION /  v 2020-thru Aug
Mo.: Prod'17: Prod'18: Prod'19: Prod'20:
Q1- :  39,008 :  52,672 : 60,601 : 56,247 >  - 7.19% (Covid?)
Q2- :  46,075 :  52,906 : 57,882 : 48,228 > - 16.7% (Covid)
Q3- :   37.1 K :  57,163 : 56,271 > - 1.56%
Q4- :   52.0K :   55,260 : 65,237 > +12 %
Yr. =  174.2k : 218.0k : 240.0k.:
=== :: 2017 ::  2018 ::  2019 ::  2020 ::
Jan.  00,000: 16,700 : 17,941 : 18,501: +3.1%
Feb.  00,000: 17,339 : 21,335 : 18.674: -12.5%
Mar.  00,000: 18,633 : 21,325 : 19,072: -10.5%
=Q1: 39,008: 52,672 : 60,601 : 56,247: - 7.1%
Apr.  00,000: 16,118 :  20,372 : 12,602: -38.1%
May 00,000:  18,675 : 18,528 : 18,129:  - 2.2%
Jun. 00,000:  18,400 : 18,882 : 17,497:  - 7.3%
=Q2: 46.08k: 52.91k : 57,882 : 48,228: -16.7%
July  00,000: 19,296 : 18,166 : 18,111:  - 0.3%
Aug. 00,000: 18,747 : 18,710 : 20,644: +10.3%
Sep.  00,000: 19,120 : 19,395 ::
=Q3: 37.10K: 57,163 : 56,271 ::
9m.: 122.2k: 162.75k : 174,754 :  + 7%
Oct.: 17.33K: 18,065 : 20,968 :
Nov.: 17.33K: 18,193 : 21,835 :
11m: 156.8k: 199.0k: 217,600 :
Dec.: 17.33K: 19,002: 22,434 : Monthly record!
=Q4: 52.00K: 55,260 : 65,237 : yr: 239,991
======================= ;
2018A: "218,001 OUNCES, UP 25% OVER 2017" :
2019A: "239,991 OZ. est. ,  UP 10% OVER 2018" :
2020 : 240,000 ?? / 200,000+ Segovia + 35,000 Marmato

= : TWO MINES PRODUCTION /  v 2020-Aug
Two Mines: Combined /  ——— : Segovia / ——— : Marmato/
Mo.:  Prod'19: Prod’20 / Prod'19: Prod’20 / Prod'19: Prod’20 /
Q1- :  60,601 : 56,247  /   54,386 : 50,346  /  6,215  :  5,901  /
Q2- :  57,882 : 48,228  /   51,625 : 44,377  /   6,257  : 3,851  /
Q3- :  56,271 : 59k.Est /   53k.E.  : 53k.Est /  6,000. : 6,000. /
Q4- :  65,237 : 59k.Est  
Yr.=  239,991: 222k.E : - 7.5%E
Mo.: Prod'19: Prod’20 / Prod'19: Prod’20 / Prod'19: Prod’20 /
Jan.  17,941 : 18,501  /  16,220 : 16,865  /  1,721.  :   1,636 /
Feb.  21,335 : 18.674  /  19,196 : 16,548  /  2,139. :   2,126  /
Mar.  21,325 : 19,072  /  18,970 : 16,993  /  2,355  :   2,139  /
=Q1: 60,601 : 56,247  /   54,386 : 50,346  /  6,215  :  5,901  /
Apr.  20,372 : 12,602  /   18,371 :  11,400 /   2,101  :  1,202  /
May 18,528 : 18,129   /   16,363 : 16,915  /   2,165  :  1,214  /
Jun. 18,882 : 17,497   /   16,891 : 16,062  /   1,991  :  1,435  /
=Q2: 57,882 : 48,228   /   51,625 : 44,377  /   6,257  :  3,851  /
July  18,166  : 18,111   /.  16,100 : 16,459  /   2,066  :  1,652  /
Aug. 18,710 :  20,644  /.  16,739 : 17,901  /   1,971   :  2,743  /
Sep. 19,395 : 20,000.  /.  17.211 : ??????? /   2,184.  :
= Q3: 56,271 : 58,???
Guidance : TwoMines /  —— : Segovia -- / — : Marmato -- /
Estimate: Low to High  /     Low to High  /.   Low to High.   /
2020 : 218.0k- 226.0k / 192.0k- 200.0k /  23,000-26,000  /
OLD  : 232.0k- 257.0k /  200.0k- 220.0k /  32,000-37,000  /
====

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Gran Colombia Gold Reports Second Quarter and First Half 2020 Results; Announces Quarterly Dividend Program (1.5 cents/ Qtr)

Serafino Iacono, Executive Chairman of Gran Colombia, commenting on the Company’s latest results, said, “Our first quarter results continued to show strength, and that was when gold was more than $100 an ounce lower than where we are now. Quarterly revenue surpassed $100 million for the first time leading to adjusted EBITDA of $50 million. Operating cash flow and Free Cash Flow were up over 50% compared with the first quarter last year. The balance sheet also got stronger as we built up our consolidated cash position to about $100 million and by the end of April, we had reduced our Gold Notes by 40% since the beginning of the year. We are very pleased that Caldas Gold is up and running now. Drilling results from the Deep Zone at Marmato continue to be impressive and the PFS remains on track for mid-year... (+ Covid comments)

The first quarterly dividend of 1.5 cents per common share will be paid on Oct. 15, 2020, to shareholders of record as of the close of business on Sept. 30, 2020.

Gran Colombia has $18.57M (U.S.) Q2 loss, not profit - was Profit before (weird) non-cash charges

  • Free cash flow (1) in the second quarter of 2020 was also impacted by the increased level of income tax payments compared with the second quarter last year. For the first half of 2020, free cash flow amounted to $13.5-million, about $5.6-million lower than the first half last year due to an increased level of non-sustaining capital and exploration expenditures.
  • The company's balance sheet remained solid with total cash of $87.7-million at the end of June, 2020, and further reduction in the aggregate principal amount of gold notes outstanding to $41.3-million.
  • Non-cash fair value changes in financial instruments totalling $35.4-million in the second quarter of 2020, largely driven by the company's 70-per-cent share price improvement, contributed to a net loss of $18.9-million (27 cents per share) compared with net income of $800,000 (two cents per share) in the second quarter last year. For the first half of 2020, the company reported net income of $5.7-million (13 cents per share) compared with $8.7-million (18 cents per share) in the first half last year. The first half 2020 net income was net of a $16.7-million charge related to the Caldas Gold reverse takeover transaction.
  • Adjusted net income (1) for the second quarter of 2020 was $17.5-million (29 cents per share), up from $14.2-million (29 cents per share) in the second quarter last year. For the first half of 2020, adjusted net income improved to $38.7-million (66 cents per share) compared with $27.2-million (56 cents per share) in the first half last year. The year-over-year improvement in adjusted net income for the second quarter and first half of 2020 largely reflects the positive impact of higher gold prices in 2020, partially offset by the COVID-19 impact on gold sales volumes in the second quarter of 2020.

> MORE: https://www.stockwatch.com/News/Item?bid=Z-C%3aGCM-2948912&symbol=GCM&region=C

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GCM Still Weak

Gold Summary for Aug. 19, 2020

New York spot gold fell $62.40 to $1,937.90 on Wednesday. The TSX-V followed suit, dropping 11.08 points to 739.92 while the TSX gold index lost 12.23 points to 377.06. Most Canadian gold miners retreated today, some more than others, with Gran Colombia Gold Corp. (GCM), dropping 47 cents to $6.13 on 920,000 shares.

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Which ONE gold stock does he think is Cheapest?

GCM: "Cheapest Cash Flow multiple. At 15% Free Cash flow yield"

"Sprott's been trading out, into more speculative Gold stocks"

"Probably worth $12 on a relative basis.  China is investing in Columbia" at about 13 minutes

Gold Producers’ Free Cash Flow Is Attracting Generalist Investors says Frank Holmes

==

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TOO CHEAP - under $6 ?

2020-09-02 07:20 C:GCM 5.94 News Release Gran Colombia receives TSX OK to buy back 5.93M shares

==

The NCIB will allow the company to purchase for cancellation up to 5,934,811 shares of the company over a 12-month period, representing 10 per cent of the current issued and outstanding shares in the public float as of Aug. 31, 2020. As at Aug. 31, 2020, the company had 61,941,229 common shares issued and outstanding.

Commenting on the announcement, Serafino Iacono, executive chairman, stated: "We continue to see significant potential upside in the rerating of our share price. In addition to the recently announced quarterly dividend, the NCIB is an important component of our value creation strategy as the repurchase of shares using our free cash flow provides a permanent favourable impact to our earnings and cash-flow-per-share metrics. Based on our expectation for continued strong operating and financial results, as well as the enhanced value of our investments in Caldas Gold, Gold X Mining and Western Atlas and the substantial exploration potential we have at Segovia and Zancudo, we plan to use the NCIB over the next year to support continued value creation for our shareholders."

. . . The average daily trading volume of the shares for the six months ended Aug. 31, 2020, is 614,084 shares. Daily purchases will be limited to 153,521 shares, other than block purchase exceptions. Shares purchased under the NCIB will be cancelled. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the company sought and received approval from the TSX to purchase up to 4,589,129 shares, the company purchased 56,000 shares for cancellation through the facilities of the TSX at a volume-weighted average trading price of $3.42 per share during the period from June 12, 2019, to June 11, 2020.

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Gran Colombia related Companies & Enterprise Value of Deposit - "4/16/2020 framework": @ 9/08/2020

Company —————  (symbol) $ Price: shsOS: MktCap. : Gcm%: $-Value  (%GCM): 02/24: vs. Old Peak Val.

Caldas Gold Corp.    (CGC.t. ) : C$2.97: 106.M: $314.8M: x74% : $233.0M: (61.4%): C$2.00: $212.0M, $157M
Gold X Mining Corp. (GLDX.v): C$3.81: 58.9M: $224.4M: x21% : $47.12M: (12.4%): C$2.34: $137.8M, $  29M
Western Atlas Res.  (WA.v.   ) : C$0.12: 80.0M: $    9.6M: x20% : $.  1.92M:  ( 0.5%): C$.085:  $ 6.80M, $ 1.4M
===: Three GCM co’s ====== :  =====:  =====:  $548.8M: ==== : $282.0M: (74.3%) =====> : ======> $187M (44% of $422M@$6)
Gran Colombia Gold (GCM.t): C$6.24: 60.8M : $379.4M: ==== : $282.0M: (74.3%): > $1944 Gold (24%)
--------- vs. 4/16/2020 (GCM.t): C$5.70: 60.8M : $346.6M: ==== : ======= : (100.%):
--------- vs. 7/31/2020 (GCM.t): C$7.10: 60.8M : $431.7M: ==== :  $253.9M: (58.4%): > $1968 Gold (35%)

Enterprise Value of the Segovia deposit: @$6.24, $1943 Gold (24%) at 9.8.20
Market Cap: C$379.4M: GCM.t @ $6.24
Fully Diluted C$507.0M: 88.7M x$6.24=C$553.5M -Cash inflow, exer. ($46.5M)
Compare:
Cash, est.   : C$110.3M:
Three co’s  : C$282.0M: (CGC, GLDX, WA, above)
Debt — —   : ( C$83.5M): at Apr.2020
Abv.Items :  C$308.8M: (60.9%)
Ent.Value :  C$198.2M:  39.1% /C$1.324 =
======== : US$149.7 M / $1943 -1000 Cost: /$943= 158.7k Oz, prev: 233k, 298k, 184k Oz
> 158.7k Oz. vs. 670k oz reported Reserves (23.7%)

Compare: GCM to GLD :

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Compare: TPRFF to GDXJ

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Compare: GCM to CGC

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==

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GRAN COLOMBIA REPORTS AUGUST 2020 GOLD PRODUCTION OF 20,644 OUNCES, UP 14% OVER LAST MONTH

Gran Colombia Gold Corp. produced a total of 20,644 ounces of gold in August, 2020, up 14 per cent over last month's production. This brings the total for the first two months of the third quarter of 2020 to 38,755 ounces, up 5% over the same two-month period last year. Gran Colombia's total gold production for the first eight months of 2020 of 143,230 ounces, compared with a total of 155,359 ounces in the first eight months of 2019, reflects the impact of COVID-19 on its mining operations predominantly in the second quarter of this year. The Company continues to expect its 2020 annual production will range between 218,000 and 226,000 ounces of gold.

Lombardo Paredes, Chief Executive Officer of Gran Colombia, commenting on the Company's latest production results, said, "We are pleased with the improvement in our operating results in August. Segovia continues to run steadily and at Marmato, we are beginning to see the benefit of our mine optimization work in the Upper Zone mine on our production results in August now that we have a full complement of workers available to us. We remain vigilant in our COVID-19 protocols to protect the safety of our workers and we are confident that we will meet our production guidance for the year."

Gran Colombia processed an average of 1,293 tonnes per day ("tpd") in August 2020 at its Segovia Operations, up from 1,155 tpd last month, with an average head grade of 15.4 g/t. This resulted in 17,901 ounces of gold production in August bringing the total for the first two months of the third quarter of 2020 to 34,359 ounces, up 5% over the same two-month period last year primarily attributable to 7% higher head grades. For the first eight months of 2020, the Segovia Operations have processed an average of 1,242 tpd at an average head grade of 14.7 g/t compared with an average of 1,173 tpd processed during the first eight months last year at an average head grade of 16.9 g/t. Segovia's total gold production for the first eight months of 2020 amounted to 129,082 ounces compared with 138,850 ounces in the first eight months last year and reflects the impact of COVID-19 on its operations from late March through mid-April.

At Caldas Gold Corp.'s Marmato mine, operations benefitted in August 2020 from an increased availability of workers and the implementation of action plans to begin to improve mining practices to reduce dilution as outlined in Caldas Gold's recent pre-feasibility technical report for the mine expansion at its Marmato Project. As such, Caldas Gold saw an increase in its daily processing rate to an average of 1,034 tpd in August, up about 23% from last month, with an average head grade of 3.0 g/t, up from 2.2 g/t last month... This brings total gold production for the first two months of the third quarter of 2020 to 4,396 ounces, up 9% over the same two-month period last year.

> MORE: https://www.stockwatch.com/News/Item?bid=Z-C:GCM-2962461&symbol=GCM&region=C

 

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Production news helped GCM, as did the 5%+ jump in GDXJ

GCM group ... update: GCM: C$6.73 +0.27, +4.18% / wtB: $4.69, +6.8% / GDXJ: $61.34, +5.5%

aHvGhvI.gif

==

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Gran Colombia Gold to spin out Zancudo project to ESV

2020-09-24 17:10 ET - News Release

Zancudo comprises a historical silver-gold mine (the Independencia mine) located in the Middle Cauca gold belt. Gran Colombia acquired Zancudo in 2010 and completed a 14,000-metre drilling program carried out in 2011 and 2012.

+ ESV will issue 27 million common shares to Gran Colombia
+ 6.67 Million shares: at a price of 45 cents per subscription receipt. Gran Colombia intends to subscribe for $3-million of the concurrent financing.
= 33.67 Million x0.45= $15.15m

ESV chart : soon to be: Denarius Silver

Hist?symbol=ESV.H&region=C

Mr. Mike Davies of Gran Colombia reports

GRAN COLOMBIA ANNOUNCES LETTER OF INTENT TO SPIN OUT ITS ZANCUDO PROJECT

Gran Colombia Gold Corp. has entered into a letter of intent dated effective Sept. 23, 2020, with ESV Resources Ltd. to spin out its interest in the Zancudo project to ESV. Gran Colombia will also subscribe for $3-million of subscription receipts in a non-brokered private placement being completed concurrently by ESV as described further herein.

Serafino Iacono, executive chairman of Gran Colombia, commenting on the news, stated: "In light of the bullish outlook for silver, we see the acquisition of an investment in ESV as a tremendous opportunity to participate in a new vehicle that is turning its attention to becoming a silver-focused company looking to offer its shareholders exposure and leverage to the precious metal. We also see the spinout of our interest in the Zancudo project as an opportunity to create value for our shareholders in this undervalued silver-gold asset. We will be providing in-country operational expertise to ESV to advance their projects in Colombia, including an exploration program planned for the Guia Antigua project following completion of the transactions and financing by ESV."

Zancudo

Project spinout

The Zancudo project consists of a 1,052-hectare mining concession area located in the Titiribi mining district in Antioquia, Colombia, about 27 kilometres southwest of Medellin. Zancudo comprises a historical silver-gold mine (the Independencia mine) located in the Middle Cauca gold belt. Gran Colombia acquired Zancudo in 2010 and completed a 14,000-metre drilling program carried out in 2011 and 2012.

In March 2017, Gran Colombia signed an option agreement with Iamgold Corp. for the exploration and potential purchase of an interest by Iamgold in Zancudo. Under the agreement, Iamgold was granted an option to acquire an initial undivided 65-per-cent interest in Zancudo by incurring an aggregate of $10-million (U.S.) of mineral exploration expenditures over a six-year period, subject to meeting specified annual work commitments during this period. From 2017 through 2019, Iamgold has completed a total of approximately 16,224 metres of drilling at Zancudo and has incurred over $4-million (U.S.) of its exploration commitment. However, due to COVID-19, Iamgold has suspended its drilling program thus far in 2020. Iamgold was also granted an additional option to acquire a further 5-per-cent undivided interest, for an aggregate 70-per-cent undivided interest in Zancudo, by completing a feasibility study within three years after exercising the first option. Upon exercise of the first option or the second option, as the case may be, the parties will form a joint venture to hold Zancudo, to advance the exploration and, if feasible, to advance the development and mining of any commercially exploitable orebody.

Under the terms of the spin out transaction, ESV will issue 27 million common shares to Gran Colombia in exchange for its interest in the Zancudo project. In addition to any escrow restrictions imposed by the policies of the TSX Venture Exchange, all common shares issued to Gran Colombia will be subject to a voluntary pooling arrangement from which one-quarter of the shares will be released on each of Dec. 28, 2020, March 27, 2021, June 27, 2021, and Sept. 27, 2021. ESV has also agreed to be bound by the terms of the option agreement with Iamgold.

ESV private placement

ESV has announced that it has also signed a letter of intent with 1255269 B.C. Ltd., a company not related to Gran Colombia or any insiders of Gran Colombia, to concurrently acquire all of the outstanding share capital of the Guia Antigua vendor. The Guia Antigua vendor owns the Guia Antigua project, which encompasses the exploration, development and mining rights to a 386-hectare area located in the eastern part of Gran Colombia's Segovia mining title focused on the high-grade silver-gold Guia Antigua vein, which falls outside the areas associated with Gran Colombia's mining operations and exploration activities.

As a condition to completing the acquisitions of both the Zancudo and Guia Antigua projects, ESV has announced that it intends to complete a non-brokered private placement financing to raise up to $7-million through the issuance of up to 15,555,000 subscription receipts of the Guia Antigua vendor at a price of 45 cents per subscription receipt. Gran Colombia intends to subscribe for $3-million of the concurrent financing.

> MORE > https://www.stockwatch.com/News/Item?bid=Z-C:ESV-2967273&symbol=ESV&region=C

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GCM group: YTD.: 10d /  GCM: $6.28, wtB: $4.15, CGC: $2.85: GLDX: $3.65, ESV.h: $0.56, WA: $0.155 @ 9.24.20

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(Adding ESV in late Sept., "Group" valuations may look like this):

Gran Colombia related Companies & Enterprise Value of Deposit - (4/16/2020 framework) @ 9/24/2020

Company —————  (symbol) $ Price: shsOS: MktCap. : Gcm%: $-Value  (%GCM): 02/24: vs. Old Peak Val.

Caldas Gold Corp.    (CGC.t. ) : C$2.85: 106.M: $302.1M: x57% : $172.2M: (44.3%): C$2.00: $212.0M, $157M
Gold X Mining Corp. (GLDX.v): C$3.65: 58.9M: $215.0M: x21% : $45.15M: (11.6%): C$2.34: $137.8M, $  29M
"Denarius Silver".      (ESV.h.v): C$0.56: 71.2M: $  39.9M: x47% : $ 18.75M: ( 4.8%): C $0,00: $. 0.00M, $  00M
Western Atlas Res.  (WA.v.   ) : C$.155: 80.0M: $  12.4M: x20% : $. 2.48M:  ( 0.6%): C$.085:  $ 6.80M, $ 1.4M
=== : Four GCM co’s  ====== :  =====:  =====:  $569.4M: ==== : $238.6M: (61.4%) =====> : ======> $187M (44%)
Gran Colombia Gold (GCM.t): C$6.28: 61.9M : $388.7M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)
--------- vs. 4/16/2020 (GCM.t): C$5.70: 60.8M : $346.6M: ==== : ======= : (100.%): C$6.94 : C$422M (100%)

Wow.  Over 60% (ie 61.4%) of GCM's MktCap is covered by investments in these four companies

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