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drbubb

Gran Columbia (GCM.t) : restructured Columbian Gold miner

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Gold linked Notes, Value Estimate: wt: tprxf : US$0.90 @ C$3.06
UNITS:
Date : Gold: GCM : Ratio: G/1250 x57%+104%= Debs : Wt2.21: CAD : $USD : 124wt: Comb.: USD$: x512.8:
05/23: 1300: $2.84 : 458. : 104.0 : 59.3 + 44.7 = 104.0 : $0.63 x0.779 = $0.49 : 06.1% : 110.1 : $2.21: 1133 :
05/25: 1304: $3.26 : 400. : 104.3 : 59.5 + 44.7 = 104.2 : $1.05 x0.771 = $0.81 : 10.0% : 114.2 : $2.51: 1287 :
05/31: 1305: $3.03 : 431. : 104.4 : 59.5 + 44.7 = 104.2 : $0.82 x0.772 = $0.63 : 07.8% : 113.0 : $2.34: 1200 :
06/19: 1277: $3.06 : 417. : 102.2 : 58.2 + 44.7 = 102.9 : $0.85 x0.753 = $0.64 : 07.9% : 110.1 : $2.30: 1179 :
06/26: 1258: $2.89 : 435. : 100.6 : 57.4 + 44.7 = 102.1 : $0.68 x0.751 = $0.51 : 06.3% : 108.4 : $2.17: 1113 :
06/29: 1255: $2.88 : 436. : 100.4 : 57.2 + 44.7 = 101.9 : $0.67 x0.761 = $0.51 : 06.3% : 108.2 : $2.19: 1123 :
07/31: 1234: $2.53 : 488. : 100.0 : 57.0 + 44.7 = 101.7 : $0.32 x0.769 = $0.25 : 03.1% : 104.8 : $1.95: 1000 :
08/03: 1223: $2.52 : 485. : 100.0 : 57.0 + 44.7 = 101.7 : $0.31 x0.770 = $0.24 : 03.0% : 104.7 : $1.94: $995 :
=====

Last Col.: $1000/ 1.95= 512.8shs xC%2.52= C$1,292 x0.770= $995
(see detail, at bottom of post)
$100K Face : x57%= $ 57,000 /$1250 = 45.6 Oz. + $43,000
 
flxyxn5.png
 
How will the Gold-linked Notes be repaid ?

During the six-year term of the Notes, the Company will deposit
an amount of gold each year in a trust account (the “Gold Trust Account”).
The annual number of ounces of gold to be deposited by the Company
into the Gold Trust account and the amortization the principal amount of the Notes are as follows:

Year? Ounces: %Face : Principal Amortization
Year 1: 15,594 : 19.89% : US$19,492,000 (to Apr.30, 2019)
Year 2: 15,600 : 19.90% : US$19,500,000 (to Apr.30, 2020)
Year 3: 13,200 : 16.84% : US$16,500,000 (to Apr.30, 2021)
====  : 44,394 : 56.63% : US$56,492,000 (57% of $98Mn.) - Not callable for 3 years
Year 4: 12,000 : 15.31% : US$15,000,000 : callable at 104.13%?
Year 5: 12,000 : 15.31% : US$15,000,000 : callable at 102.07%?
Year 6: 10,000 : 12.75% : US$12,500,000 : callable at 100.00%?
>Total : 78,394 : 100.0% : US$97,992,000 :

78,394 ounces, equivalent to approximately US$98 million total principal amount at the US$1,250 per ounce floor price.
Each quarter ending January 31, April 30, July 31 and October 31, the Company will amortize the principal amount of the Notes by selling the physical gold in the Gold Trust Account.
The amount of the quarterly payments to  Holders will  be  determined  by  reference  to  the  London  P.M.  gold  fix on  the  15th day  of January, April, July and October, as applicable, subject to a guaranteed floor price of US$1,250 per ounce (the “Floor Price”).
The amount of the principal reduction (the “Amortization Payment”) each quarter will be based on the number of gold ounces and the Floor Price.
The excess amount of the London P.M. gold fix per ounce over the Floor Price (the Gold Premium”) will be paid to holders as additional premium and will not be  applied  to  amortization  of  the  principal  amount  of  the  Notes.
Total  quarter...

> info source: http://s21.q4cdn.com/834539576/files/FAQ/GCM-Gold-Linked-Notes-Debentures-FAQ-2018-04-30.pdf

=====

How will the Gold-linked Notes be valued ?

My Estimate: Valuing the Gold Links Debs, including Gold linkage & wts

104% * 43% + ($1300/1250= 104%) *57% = 104%
 + +
:Wts: 124x ($C2.84 - C$2.21 = C$ 0.63 x .779 = US$ 0.49) = 124 x 0.49 = 6.1%

===> 104% (debs) + 6.1% (wts) = 110.1%

This could be a low estimate, since it ignores the Time Value: below $1250 on the Debentures,

and below C$2.21 on the Warrants.  That could add another 2-3% to the valuation.

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21 hours ago, drbubb said:

>> 900d? We shall see.

 

image.png.b357f8105b67cf939180706b6e54b93a.png

We have seen it now, Big move today and the volume gradually grows as you thought. It would be nice if it retracts a bit for another good entry point..

image.png

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Yup. The 900d MA was shattered

GCM closed at C$ 3.19 +$0.35 : +12.32% ... 10d

AiUh4Xx.gif

It did however leave a "breakaway" gap at $2.85 (= 900d AM)

I hope you own some.

I am pretty happy this morning, because the share (thru the 1%/5% debs) are my 2nd largest position,

after the 8.25% GCM Gold linked debs.  (I hold them for income & their gold linkage)

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NEXT major Resistance?  About $4.00?

GCM ... update

M7wZMDl.gif

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12 minutes ago, drbubb said:

NEXT major Resistance?  About $4.00?

It will be a resistance level, for sure, however, if we try to correlate the current volume levels with the volumes that existed at $4.00-level 2.5 years ago then, I feel,  it might not necessarily be a strong  resistance.

From your experience, what is the "expiry time horizon" for junior miners and for stock in general, when the previous resistance levels can be disregarded? 3 years? or more?

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Interesting concept.

The shadow of the past is always there. I reckon.  But maybe it does fade a bit over time

Now that GCM has punched easily through the 900d MA,

I think the 987d (almost 1000d), is the next logical resistance

GCM.t ... Updated, Last: C$3.26 at 5/25/2018 - Versus 610d.MA : 987d.MA :

ARAgY4W.gif

This is a fibonacci #: 1,2,3,5,8,13: 21, 34,55,89,144, 233: 377,610 : 987 days

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On 24/05/2018 at 11:28 PM, drbubb said:

Yup. The 900d MA was shattered

GCM closed at C$ 3.19 +$0.35 : +12.32% ... 10d

AiUh4Xx.gif

It did however leave a "breakaway" gap at $2.85 (= 900d AM)

I hope you own some.

I am pretty happy this morning, because the share (thru the 1%/5% debs) are my 2nd largest position,

after the 8.25% GCM Gold linked debs.  (I hold them for income & their gold linkage)

Really good call Dr B.

Was sat dithering early May, considered for a long time, still tempted but I wonder if that breakaway gap could be back tested?

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Colombia's Largest Gold and Silver Producer - Gran Colombia Gold

 

"We are only mining three of the known 27 high-grade veins" (at Segovia)

 

RE:New Video - May 2018

As a mining buff I found the video very interesting . As an investor there was lots of information . Things like their own labs , schools for local children and mine rescue teams with modern equipment are turning this into a first class operation . 
   The share count is now fully explained at 62 million fully diluted . It could end up being less .
 At Segovia only 3 of 27 known high grade veins are being mined with " blue sky potential " .
  They are just starting to drill into the high grade at Marmato . 
 They estimate that at $2.70 per share they are undervalued as compared to their peers by 2 1/2 times .   If there is a better buy in mining than Gran Colombia I`d like to know what it is .
      I would have liked to hear what IAM Gold is finding at Zancudo but that will come
 
2/
these debentures are behind us ... now we need operational success , means.. drilling,drilling drilling ..... stable operation at Segovia , a good PEA at Marmato ...   this things will be to key for a higher valuation ....       BUT , its highly possible this stock goes to 5-6CAD without new developements , only because undervaluation


Read more at http://www.stockhouse.com/companies/bullboard#RPfB1ldRBSMLMxpU.99

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GCM mentioned in Seeking Alpha

A recommendation (sort of) but his info is wrong and outdated.  Doesn't take into account redemption of 2020 and 2024 debentures and new debt financing with less dilution impact.

https://seekingalpha.com/article/4178773-10-best-risk-reward-leveraged-gold-stocks

Read more at http://www.stockhouse.com/companies/bullboard#JVbT0ZIxiKLlBd6Y.99

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Gran Colombia Gold’s Trailing 12-Months’ Gold Production Tops 192,000 Ounces at the End of May 2018

T.GCM | 38 minutes ago TORONTO, June 11, 2018 (GLOBE NEWSWIRE)

-- Gran Colombia Gold Corp. (TSX:GCM) announced today that it produced a total of 18,675 ounces of gold in May bringing the total for the first five months of 2018 to 87,465 ounces, up 27% compared to the first five months of 2017. This brings the Company’s trailing 12-months’ total gold production to 192,461 ounces, up 11% from 2017’s annual production of 173,821 ounces and near the top end of the Company’s production guidance for 2018 of between 182,000 and 193,000 ounces. Serafino Iacono, Executive Co-Chairman of Gran Colombia, commented, “Continuing focus on our high-grade Segovia Operations is driving our production growth as expected and we are pleased to see that we are trending toward a total of 200,000 ounces of gold for 2018.”

. . . The Company also confirmed today that it deposited 1,294* ounces of gold from May’s production, as required under the new 2024 gold-linked notes, into a gold trust account. The Company has established the gold trust account with a Canadian-based financial institution rather than Banque Pictet & Cie SA as originally contemplated in the Trust Indenture dated as of April 30, 2018.
Read more at http://www.stockhouse.com/companies/bullboard#pKXDiwjqSZ0v7Scc.99

*1,294oz x0.4%= 5.14 oz x$1300= $6,694

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MORE Detail of GCM / SSP transaction

SSP.v / Sandspring Resources ... update : All : 5yr : 2yr : 6mo : 10d / C$0.25 +0.01 / 12mos Range: cc

NQNFPvN.gif

Sandspring Resources to Acquire Interest in Silver - Gold Project in the Segovia-Remedios Mining

District of Antioquia, Colombia and Announces Private Placement

June 12, 2018 - Denver, Colorado and Vancouver, British Columbia - Sandspring Resources Ltd.

(TSX-V: SSP, OTCQX: SSPXF) (the "Company") is pleased to announce that it has entered into letters of intent with GA Mine Corp. ("GA Mine") and Gran Colombia Gold Corp., and its subsidiary Gran Colombia Gold Segovia, S.A. (collectively, "Gran Colombia"), pursuant to which the Company proposes to acquire (the "Transaction") all exploration, development and mining rights to a 386 hectare area (the "Project Area") in the Segovia-Remedios mining district of Antioquia, Colombia, that includes the historic silver - gold producing Guia Antigua Mine (the "Project").

The Project Area lies within a mining title in the Segovia area that has been and will continue to be held by Gran Colombia. However, the Project Area lies outside of the areas of Gran Colombia's principal mining operations in the Segovia area. The Guia Antigua vein that is the current focus of the Project appears to be similar in geology, structure, vein style and mineralogy to other veins in the Segovia mining district.

-Remedios mining district of Antioquia

The Project Area is presently held through an unincorporated joint venture arrangement (the "Joint Venture") between Industrias Argentum, S.A.S. ("Argentum"), a Colombian company, and an affiliate of Gran Colombia, Gran Colombia Gold Segovia, S.A. GA Mine, through Arcadian Mineral Corp. ("Arcadian"), has the right to acquire the 70% interest in the Joint Venture held by Argentum. The 30% interest held by Gran Colombia is a "carried interest" in that Argentum, as the operator of the Joint Venture, is responsible for exploration, development, mining, processing and commercialization activities, at its sole expense, and Argentum and Gran Colombia participate in the results on a 70% / 30% basis, respectively.

Pursuant to the first letter of intent between the Company and GA Mine, the Company intends to acquire all of the share capital of GA Mine and its subsidiary Arcadian in order to acquire the 70% interest in the Joint Venture currently held by Argentum. In consideration for the acquisition of GA Mine, the Company will issue 21,000,000 common shares to GA Mine and make a cash payment of US$1,100,000 to GA Mine on closing of the Transaction. GA Mine will also have the right to nominate a member of the Board of Directors of the Company upon completion of the Transaction.

Pursuant to the second letter of intent between the Company and Gran Colombia, the Company intends to acquire the 30% carried interest of Gran Colombia in the Joint Venture. In consideration for the acquisition of the Gran Colombia carried interest, the Company is required to issue 15,000,000 common shares on closing of the Transaction. Gran Colombia will further subscribe for and purchase, on closing of the Transaction, Cdn$4.0 million dollars of the units to be offered by the Company as described below.
Read more at http://www.stockhouse.com/companies/bullboard#Amt2hlUsQhOb23yZ.99

 

RE: interest on SSP

The deal really doesn’t have any meaningful impact on EV so doesn’t change valuation. Basically they are selling a small property for 15m shares and buying 16m shares for $4m. Since the property sold wasn’t part of development plans I doubt anyone was factoring it into valuation.

Seems like a they picked up a long term option on gold for relatively low cost and perhaps stunted a liability if their old partner had decided to start spending money on the property they sold.  

I rather they spend spend extra cash on development, buying back stock or just letting the cash balance grow. 
Read more at http://www.stockhouse.com/companies/bullboard#IX4QDhHXsdu7jZqx.99

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Gran Columbian Gold - the gap is filled (at last) !

GCM / Gran Columbian Gold ... update

Qv6ojEF.gif

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Gran Columbian Gold - is the correction finished yet?

GCM.t ... update :

ameC0Ok.gif

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Production News: 2nd Quarter 2018

TORONTO, July 11, 2018 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX:GCM) announced today that it produced a total 18,113 ounces of gold in June bringing the total for the second quarter of 2018 to 52,906 ounces, up 15% compared to the second quarter of 2017. For the first half of 2018, total gold production amounted to 105,578 ounces, up 24% over the first half of 2017. This brings the Company’s trailing 12-months’ total gold production as of June 2018 to 194,316 ounces, up 12% from 2017’s annual production of 173,821 ounces. The Company initially provided guidance that it expected to produce between 182,000 and 193,000 ounces in 2018. However, based on its first half results, the Company now expects that its 2018 gold production will surpass 200,000 ounces.

Serafino Iacono, Executive Co-Chairman of Gran Colombia, commented, “We have now reported three consecutive quarters with over 50,000 ounces of gold production. With our local management team doing a very good job focusing on execution of our mine plan at Segovia, we are confident we will produce over 200,000 ounces this year.”

At the Segovia Operations, gold production in June amounted to 16,087 ounces, bringing the total for the second quarter of 2018 to 47,071 ounces and for the first half of 2018 to 93,543 ounces, up 28% compared to the first half of 2017. This brings Segovia’s trailing 12-months’ total gold production as of June 2018 to 169,206 ounces, up 14% from 2017 fuelled by continuing growth in the Company’s three mines which represented 95% of Segovia’s trailing 12-months’ production.

Read more at http://www.stockhouse.com/companies/bullboard#AyHxL4PwYImEHZfT.99

=== : PRODUCTION
Mo. : Prod'17:  Prod'18:
Q1- :  39,008 :  52,672 /3= 17,557 ave.
Apr :  14,332 :
May:  15,444 :
Jun :  16,299 :  18,113 :
Q2- :   46,075 :  52,906 : + 14.8%
12mo 173.8k : 194.3k > 2018 Target: 200k oz+
====
INCOME SENSITIVITY to Production (in Ounces)

======= :  - 2016 - :  - 2017 -:  //  Q1'2017- : Q4'2017- :  -Q1'2018  : Q2'2018- : Q3'2018- :
Prod.Oz :  149,708  : 173,821  // 39,008oz :  51,699oz :  52,672oz :  52,906oz :  50,000oz :
Au. Sold : ======> : ======> //  38,434oz :  ======  > :  49,610oz :  52,000oz :  50,000oz :
Revenues $185.1M : $215.4M // $ 45.7 M : $ 70.9 Mn : $ 64.8 Est : $ 67.6 Est : $ 65.00 Est :
Revs/Oz: $1,236oz : $1,239oz // $1189oz : $1371/oz : $1306/oz. : $1300Est : $1300Est (=$123.2x10.55)
EBITDA :  $ 66.0 M : $ 75.5 M // $ 13.6 Mn : $ 26.8 Mn : $ 27.4 Mn : $ 26.0 Est : $ 25.0 Est :
EB-/Oz. :  $ 441/oz : $ 434/oz // $ 349/oz  :  $ 518/oz : $  520/Est : $  500/Est :
FinlChg. : $ 32.8 M : $ 32.2 M //  $ 7.88 M :  $ 8.37 Mn : $8.00 Est  : $8.00 Est  :
Eb-Fin'l.  : $ 33.2M  : $ 43.3 M //  $ 5.72 M :  $ 18.4 Mn : $ 18.3 Mn :
Adj.NetI : $ 15.6 M : $ 22.9 M //  $ 3.10 M :  $ 11.0 Mn : $ 9.85 Mn : $10.4 Mn
aNI/Oz. : $ 104/oz : $ 132/oz //  $79.4/oz :  $ 213 /oz : $ 199 /oz : $ 200/ Est.
Net Inc.- : $ - n/a -  : $ - n/a -  : //   ( 0.8 M ) :  $ - n/a - -  :  $ 5.4 Mn :  $ ??? Mn .
ExcessCF : $ 2.9M : $ 16.4 M  //  $ 2.28 M : $8.60 Mn :  $2.55 Mn  : $6.00 Est
===

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Great article - favorable to GCM

Momentum Builds for High-Grade Mid-Tier Gold Producer

 

Jeff Nielson
Jeff Nielson, Stockhouse
1 Comment| 16 hours ago


image: http://www.stockhouse.com/media/marketing/ceo_event/GranColombia_logo.jpg

Click to enlargeWhile mining investors wait for bull market sentiment (and valuations) to return to the mining sector, they still want to make money. It’s not as easy as when metals markets are flying high, but it can be done.

It requires being selective. Looking for the best projects, in mining-friendly jurisdictions, with solid management. One gold mining company that meets these criteria – and is generating strong returns for investors – is Gran Colombia Gold Corp. (TSX: GCM, OTCQB: TPRFF, Forum).

This TSX-listed mid-tier gold miner is nearing a major plateau: 200,000 oz’s per year of gold production (along with silver credits), with large high-grade resources that are certain to whet the appetite. The center of operations is the Company’s flagship Segovia Mine in Colombia: the largest underground gold/silver mining operation in this rising gold jurisdiction.

It’s easy for investors to wrap their heads around this story because it’s all in the numbers. It starts with the chart for GCM:

image: http://www.stockhouse.com/getattachment/27f985f1-5edd-464c-aa79-42fc2893ba8c/GranColombia_chart.png?width=450&height=282

GranColombia_chart.png
(click to enlarge)

While most of the gold mining industry has struggled over the past year, Gran Colombia has roughly doubled its share price over this period. That’s despite a recent pullback caused by a drop in the price of gold.

How has the Company generated this impressive return? More numbers. It starts with rising production…

image: http://www.stockhouse.com/getattachment/168469de-8509-4d47-8abd-d8a0e566b057/GranColombia_production.png?width=450&height=359

GranColombia_production.png
(click to enlarge)

…then add in declining cash costs.

image: http://www.stockhouse.com/getattachment/62e573a8-dc6c-4e98-b8b8-bb1e0982a899/GranColombia_costs-(1).png?width=450&height=387

GranColombia_costs-(1).png
(click to enlarge)

Put those two things together and you get stronger margins, rising cash flow, and more profit.

Read more at http://www.stockhouse.com/news/newswire/2018/07/13/momentum-builds-for-high-grade-mid-tier-gold-producer#DudYie7KRTyAjGd3.99

> MORE: http://www.stockhouse.com/news/newswire/2018/07/13/momentum-builds-for-high-grade-mid-tier-gold-producer

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2 / Segovia & Marmato

What makes this optimization all the more impressive is that Segovia is not a single mine, but rather a mining complex that is currently producing gold from three separate locations on the Segovia property.

Then there is the Marmato Project. The Segovia Mine Complex is a robust mid-tier gold mining operation by itself, with an abundant resource base and very high grades. Grades at Marmato are not quite as high (~ 2.5 g/t to 5 g/t Au) as with the Segovia resources, but Marmato is a monster.

The Spanish originally began mining gold from this site nearly 500 years ago. Indeed, the Marmato Mine was considered to be such a lucrative asset that it was used as collateral with British banks during Colombia’s war of independence against Spain. Over a span of five centuries, gold mining at Marmato has continued almost continuously.

For mining investors who are suspecting that this property has been mined out, guess again. Marmato has a current resource of nearly 4 million ounces of gold (Measured & Indicated) along with over 4 million ounces as an Inferred resource. In addition, these resources contain roughly 38 million ounces of silver.

The land package was consolidated by the previous operator (Medoro Resources) during 2009 and 2010. In 2011, Gran Colombia merged with Medoro to become the leading gold mining company in Colombia. The property benefits from abundant infrastructure, with access directly off of the Pan American Highway.

Longer term, the Company sees Marmato as a separate underground mine. With operations at Segovia now firing on all cylinders, producing a long-term development strategy for Marmato is high on management’s agenda.

That’s the operational picture for Gran Colombia. However, if investors really want to understand this strong turn-around story, they also need to take a close look at the Company’s finances.

Read more at http://www.stockhouse.com/news/newswire/2018/07/13/momentum-builds-for-high-grade-mid-tier-gold-producer#DudYie7KRTyAjGd3.99

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3/ Debt restructured in a creative way

GCM’s previous large debt-load was more than just a financial millstone around the neck of the Company and its shareholders. It was creating a large overhang of dilution. What was needed was a full restructuring.

With the operational parameters all tracking better, management turned their attention to finance. Gran Colombia cleaned up its balance sheet, lowering the Company’s debt level while also reducing the impact of dilution in financing this debt.

Here GCM looked even higher up its corporate ladder in devising a plan of action to address Gran Colombia’s debt burden and capital structure. Executive Co-Chairman Serafino Iacono led the way. A veteran in capital markets, Iacono has played an instrumental role in raising billions for natural resource projects around the world.

Iacono strengthened GCM’s balance sheet, and he did so in an innovative manner – effectively selling a new debt product as a means of minimizing future dilution while Gran Colombia paid down its debt. What was this “new product”? Gold-backed notes.

The low current price of gold is a concern to gold mining companies and gold investors, but it also represents opportunity: the chance to cash in when the price of gold corrects higher to a more rational level. Knowledgeable gold investors understand this reality. Consequently, there was no shortage of takers for Gran Colombia’s gold-backed notes to refinance its debt. Co-Chairman Iacono went into further detail on this successful restructuring.

We offered a very attractive piece of paper to the market and the market overwhelmingly responded. We raised US$98 million which allowed us take out our senior secured debentures, reducing potential dilution in the process, and putting in place a new 6-year note that allows us to use less than 10% of Segovia’s expected gold production to repay the debt while providing investors in the notes with an 8 ¼% coupon and upside in their return if gold is above US$1,250 per ounce.

We added about US$14 million to our cash position through this financing and the units we sold also included some warrants, an additional source of future capital for our balance sheet. Our operational improvement combined with our improved balance sheet puts us in a very nice position to explore and expand our assets at Segovia and Marmato.
 
4 / Conclusion
For new investors, however, the bottom line is opportunity. Gold mining investors can buy into this mid-tier producer as it nears 200,000 ounces per year of gold production. With vast resources and high-grade mineralization, the Company’s current $89 million market cap represents a bargain-basement valuation.

From an operations standpoint, Gran Colombia Gold is just hitting its stride and the market is just beginning to notice. This means for GCM’s share price the best is yet to come. It’s all in the numbers.
(Note: was a paid contribution)

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Acquisition of Silver-Gold Project in the Segovia-Remedios Mining District of Antioquia, Colombia

|GlobeNewswire|About: SSPXF

DENVER and VANCOUVER, British Columbia, July 26, 2018 (GLOBE NEWSWIRE) -- Sandspring Resources Ltd. (TSX-V:SSP) (OTCQX:SSPXF) (the “Company”) is pleased to announce completion of the acquisition (the “Transaction”) of the rights to a 386-hectare land package located in the Segovia-Remedios mining district of Antioquia, Colombia (the “Chicharron Project”), which includes the historic silver-gold producing Guia Antigua Mine.

The Chicharron Project was previously held through an unincorporated joint venture arrangement between Industrias Argentum SAS, a Colombian company, and a Colombian branch office of a subsidiary of Gran Colombia Gold Corp. (TPRFF) (TSX: GCM) (“Gran Colombia”).  The Company has acquired control of one-hundred percent (100%) of the Chicharron Project in consideration for the issuance of 36,000,000 common shares, a cash payment of US$1,000,000, and the reimbursement of certain expenses.  All securities issued in connection with the Transaction are subject to a four-month-and-one-day statutory hold period.

. . . Gran Colombia has initially nominated Lombardo Paredes Arenas, and AAVN Consulting has nominated Federico Restrepo-Solano, both of whom have been appointed to the board of directors effective immediately.

Federico Restrepo-Solano is a Colombian business executive with more than 27 years of experience in the mining, oil and infrastructure industries.  Currently he is a Partner and Corporate Director of Qvartz Capital Partners, a strategic advisory firm...

Lombardo Paredes-Arenas serves as Chief Executive Officer of Gran Colombia...

Private Placement

The Company also announces that it has completed an oversubscribed private placement of 41,000,000 units (each, a “Unit”) at a price Cdn$0.25 per Unit, for gross proceeds of Cdn$10,250,000.  Each “Unit” consists of one common shares and one share purchase warrant entitling the holder to purchase one additional share at Cdn$0.40 for a period of sixty (60) months.  The placement was oversubscribed by 5,000,000 Units following strong investor interest, and included a subscription from Gran Colombia for 16,000,000 Units.

Richard Munson, President and Chief Executive Officer of the Company, commented, “We are very pleased to have closed the acquisition of the Chicharron Project and are excited to begin our initial exploration work and simultaneously evaluate the opportunities for resuming mining activity at the Guia Antigua Mine.  We are also moving immediately to seek the assistance of the Gran Colombia team in reviewing the development plans for Toroparu, our flagship property in Guyana.  The experience of Serafino Iacono, Executive Co-Chairman of Gran Colombia, and his team in developing and operating the Choco Mine in the Guiana Shield will be invaluable to the Company.
Read more at http://www.stockhouse.com/companies/bullboard#criACRLM6ZW4u2C3.99

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SSP.v / Sandspring Resources ... update :

ZNt1sPL.gif

GCM has about 15%, could go over 20%

In connection with completion of the Transaction, Gran Colombia received 15,000,000 common shares of the Company in consideration for their interest in the Chicharron Project.  Gran Colombia acquired a further 16,000,000 Units of the Company in connection with the private placement.  Following completion of the Transaction and the private placement, Gran Colombia has control and direction over an aggregate of 31,000,000 common shares and 16,000,000 share purchase warrants.  The common shares controlled by Gran Colombia represent approximately 14.78% of the outstanding common shares of the Company.  Assuming exercise of just the warrants controlled by Gran Colombia, when combined with their existing ownership, they would have control and direction over 47,000,000 common shares representing approximately 20.83% of the then outstanding common shares of the Company.

Read more at http://www.stockhouse.com/companies/bullboard#criACRLM6ZW4u2C3.99

RE:RE:of interest

people don't understand it or we really have to wait until the 2018 debentures are gone .....   this deal with Sandspring Res. is perfect from value view ...  2 great projects one of them next to segovia...  i think its possible GCM will take over Sandspring later ...   the project next to the Segovia mine  has high potential ...    and GCM owns 20% of the entire company nowe (after warrants) .... 


Read more at http://www.stockhouse.com/companies/bullboard#XHblTWToTJuY74Km.99

GCM.t / Gran Columbian Gold ... update :

kJ1Q9Pq.gif

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GCM.t ... update :

y6RJ3Ar.gif

Date : Gold: GCM : Ratio: G/1250 x57%+104%= Debs : Wt2.21: CAD : $USD : 124wt: Comb.: USD$: x512.8:
05/23: 1300: $2.84 : 458. : 104.0 : 59.3 + 44.7 = 104.0 : $0.63 x0.779 = $0.49 : 06.1% : 110.1 : $2.21: 1133 :
05/25: 1304: $3.26 : 400. : 104.3 : 59.5 + 44.7 = 104.2 : $1.05 x0.771 = $0.81 : 10.0% : 114.2 : $2.51: 1287 :
05/31: 1305: $3.03 : 431. : 104.4 : 59.5 + 44.7 = 104.2 : $0.82 x0.772 = $0.63 : 07.8% : 113.0 : $2.34: 1200 :
06/19: 1277: $3.06 : 417. : 102.2 : 58.2 + 44.7 = 102.9 : $0.85 x0.753 = $0.64 : 07.9% : 110.1 : $2.30: 1179 :
06/26: 1258: $2.89 : 435. : 100.6 : 57.4 + 44.7 = 102.1 : $0.68 x0.751 = $0.51 : 06.3% : 108.4 : $2.17: 1113 :
06/29: 1255: $2.88 : 436. : 100.4 : 57.2 + 44.7 = 101.9 : $0.67 x0.761 = $0.51 : 06.3% : 108.2 : $2.19: 1123 :
07/31: 1234: $2.53 : 488. : 100.0 : 57.0 + 44.7 = 101.7 : $0.32 x0.769 = $0.25 : 03.1% : 104.8 : $1.95: 1000 :
08/03: 1223: $2.52 : 485. : 100.0 : 57.0 + 44.7 = 101.7 : $0.31 x0.770 = $0.24 : 03.0% : 104.7 : $1.94: $995 :
=====
Last Col.: $1000/ 1.95= 512.8shs xC%2.52= C$1,292 x0.770= $995

2JA7uhK.png

 

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Financials

TORONTO, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM) announced today that it will release its financial results for the second quarter and first half of 2018 after market close on Tuesday, August 14, 2018 and will host a conference call and webcast on Wednesday, August 15, 2018 at 9:30 a.m. Eastern Time to discuss the results. 

Webcast and call-in details are as follows:

Live Event link:   https://edge.media-server.com/m6/p/5sygmz4u
International:    1 (514) 841-2157
North America Toll Free:   1 (866) 215-5508
Colombia Toll Free:   01 800 9 156 924
Conference ID:   47275629

A replay of the webcast will be available at www.grancolombiagold.comfrom Wednesday, August 15, 2018 until Friday, September 14, 2018. 

===

Much will be clarified by then...

RE:Financials

Maybe we will finally get out from under the drag caused by the debs . For sure it will finally clear up the confusion surrounding the number of outstanding shares . We are finally getting all this out of the way just in time to watch the gold price tank .  I just don`t get it any more . Interest goes up , gold drops . Interest goes down , gold drops .  Gold really is manipulated .

Read more at http://www.stockhouse.com/companies/bullboard#ccgCsiCCjmtD9ert.99

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RE:RE:RE:Won't the purchase of Sandspring use up a lot of


they told us they will bay back the 2018 debentures in shares August 11 ... the 2014Notes are payable in cash (from their gold-trust) ...over the next 6 years...   the deal with Sandspring has no influence on dilution ...  GCm added  great valuewith this deal ..Sandspring is worth much more..they already have 10 million oz proven and some satelite deposits for major expansion ... + the new property next to GCM's deposit at Segovia...AND..there in an old mine/mill at this concession...  good move from manegement!   .... but POG has to turn around..1200$ arleady delivers good profits but better the price moves not lower....  other miners have the same problem...  without developement  spending GCM is able bringing down the AISC near to 800$/oz ...    don't worry ;)

..COT data says the worst could be over....

Read more at http://www.stockhouse.com/companies/bullboard#SwCgGZZuhvBgrYVr.99

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FURTHER UPDATES:  GCM will settle 1% debs, 100% with shares... leaving $28.5 Million in Cash !

8/7/18 : Gran Colombia Gold Announces it Will Settle 100% of its 2018
AFTER settlement :
MktCap : US$ 93.4 Million = 0.766 x C$ 121.95M = C$2.53 x 48.2 million
Cash---  : US$ 28.5 Million (30.5% of MktCap)
Net MC : US$ 64.9 Million
===

That's plenty of money to Drill, money to expand the Gold resource

TORONTO, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX:GCM) announced today that it gave notice on August 3, 2018 to the trustee (the “Trustee”) for its Senior Unsecured Convertible Debentures due 2018 (the “2018 Debentures”) that on maturity on August 11, 2018 (the “Maturity Date”), pursuant to the provisions of the underlying indenture (the “Indenture”), the Company has elected to satisfy its obligation to repay 100% of the outstanding principal amount of its 2018 Debentures, and all accrued and unpaid interest thereon (collectively, the “Outstanding Balance”), by issuing and delivering common shares.

As of August 3, 2018, the aggregate principal amount of the 2018 Debentures issued and outstanding was approximately US$33.0 million, and as such, the Company expects that it will be issuing a total of approximately 17.0 million common shares on August 13, 2018 (the “Conversion Date”) to settle the Outstanding Balance, bringing its total issued and outstanding common shares as of the Conversion Date to approximately 48.2 million. Holders of the 2018 Debentures maintain their right to transfer or convert their 2018 Debentures prior to the close of business on August 10, 2018.

Serafino Iacono, Executive Co-Chairman of Gran Colombia, commented, “We are pleased to conclude this final chapter of our effort to simplify our capital structure and improve our ratio of debt to equity. With increasing awareness of our under-valued equity, we hope that this increase in shares outstanding will enhance liquidity in the market for our stock. At the end of June 2018, our cash position stood at approximately US$25 million and the return of the 2018 Debentures’ sinking fund will add another US$3.5 million of unrestricted cash back into our treasury.

. . .

Segovia:

We are now ready to commit an additional US$2.3 million toward additional drilling through the balance of 2018 to follow up on this discovery to incorporate it into our future development and production plan.”
El Silencio
... is the oldest and deepest mine in the Segovia district, has 45 levels descending to a depth of over 800 meters. As previously announced, a total of 424 channels were sampled in the down-plunge extensions of the north and south ore-shoots. Of this total, 291 channels, or 69%, averaged over 10 g/t Au and 163 channels, or 38%, averaged over 30 g/t Au. This additional drilling will aim to extend the north, middle and south ore-shoots down-plunge with the objective of testing extensions another 200 meters below the currently delineated resource. The drilling program, expected to commence in September, will be a combination of conventional drilling with 50 meter by 50 meter nominal center spacing on the north ore-shoot and directional drilling on the middle and south ore-shoots.

Read more at http://www.stockhouse.com/companies/bullboard#VlP1WugEB4PA2u33.99

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My goodness - over 30% of Market Cap is in cash!

When will they start paying dividends? They could easily pay a 4% (CAD 10 cent) dividend right now!

GCM.t ... update : 10d : Last: C$2.53 x.766 = US$ 1.94 - held the 200d MA at C$2.39+ / recent low= C$2.42

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RE:RE:Gran Colombia Gold Announces it Will Settle 100% of its 2018

US$28 million cash!
That is a huge jump from last q of $3 million.
People who previously saw the $3 million and were afraid they were running out of cash will now see they are flush with cash and a cash generating cow.

163 channels, or 38%, averaged over 30 g/t Au is a good sign of things to come

Read more at http://www.stockhouse.com/companies/bullboard#uUryIWcP6rJB4b6y.99

/ 2 /

Free cash flow for 2018

What are the free cash flow projections for 2018 and 2019 ?

This 2017 blog says free cash flow for 2017 was $15 million USD:
https://reminiscencesofastockblogger.com/2017/07/27/buying-gran-colombia-gold-a-levered-free-cash-flow-generating-gold-producer/
>>

Summing it up: I find it very hard to resist a gold miner trading at less than 4x free cash flow (I’m using a market capitalization of $60 million Canadian which includes conversion of the 2018 debentures and free cash flow of $15 million USD for 2017, which I believe to be conservative).  To say it is unusual to find a miner with this sort of free cash yield is an understatement.  Unheard of is more like it.

Read more at http://www.stockhouse.com/companies/bullboard#qUHQ3e5xeHrzJhmM.99

/ 3 /

GCM: 48.2 million shares x C$2.44 = C$ 117.6M x 0.761 = US$ 89.5M - $28M cash = $61.5M Net

As of August 3, 2018, the aggregate principal amount of the 2018 Debentures issued and outstanding was approximately US$33.0 million, and as such, the Company expects that it will be issuing a total of approximately 17.0 million common shares on August 13, 2018 (the “Conversion Date”) to settle the Outstanding Balance, bringing its total issued and outstanding common shares as of the Conversion Date to approximately 48.2 million. Holders of the 2018 Debentures maintain their right to transfer or convert their 2018 Debentures prior to the close of business on August 10, 2018.

 

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