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CGC.t / Caldas Gold, 57.5% owned by GCM.t

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CGC.t / Caldas Gold, 57.5% owned by GCM.t

( Also trading on the OTCQX® Best Market in the United States under the symbol “ALLXF”.)

Update: CGC group: YTD.: 10dCGC: $2.85 (45.4%), GCM: $6.28, wtB: $4.15 - @ 9.25.2020

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About Caldas Gold Corp.

Caldas Gold is a Canadian junior mining company, currently advancing a major expansion and modernization of its underground mining operations at its Marmato project in the department of Caldas, Colombia. Caldas Gold also owns 100 per cent of the Juby project, an advanced exploration-stage gold project located within the Shining Tree area in the southern part of the Abitibi greenstone belt about 100 kilometres south-southeast of the Timmins gold camp.

GCG.t / Caldas Gold ... 4yr: 2yr: 1yr: 6mo: 10d / Last: C$2.97 +$0.56, +23.24%

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(Old posting from GCM thread, Dated July 22nd):

Market is absorbing Caldas / CGC placement shares well

Placement was at C$2.25, including half wts. with strike price at $2.75... worth maybe 25 cents per CGC share (ie $0.50 per wt.)

Tuesday: C$2.65 + 0.24, +9.96%, volume: 56,060 only !

  CGC vs. GCM... update :

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News

2020-07-22 07:39 C:CGC 2.65 News Release Caldas Gold increases placement to $50-million
2020-07-17 07:36 C:CGC 2.35 News Release Caldas Gold produces 3,851 oz Au in Q2

CALDAS GOLD ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT OF SPECIAL WARRANTS INCREASED TO CA$50 MILLION

In connection with Caldas Gold Corp.'s previously announced bought-deal private placement of special warrants, Scotiabank and Canaccord Genuity Corp., acting as co-lead underwriters and on behalf of a syndicate of underwriters, have exercised their option to purchase an additional 2,222,222 special warrants at an issue price of $2.25 per special warrant for additional gross proceeds of approximately $5-million, bringing the aggregate gross proceeds of the offering to $50-million.

Serafino Iacono, chairman and chief executive officer of Caldas Gold, commented: "We are very pleased with the success of the offering and interest in Caldas Gold's equity, including Wheaton Precious Metals Corp. who, through their wholly owned subsidiary, Wheaton Precious Metals International Ltd., are also providing $110-million (U.S.) through a streaming transaction as part of the funding to build Colombia's next major gold mine at our Marmato project. In light of this offering, we now anticipate raising an aggregate of up to $115-million (U.S.) in the previously announced offering of units consisting of senior secured gold-linked notes and common share purchase warrants."

Caldas Gold also announced that Gran Colombia Gold Corp., the company's principal shareholder, has agreed to purchase 8,888,889 special warrants in the offering, for an aggregate subscription of approximately $20-million, to preserve its equity interest above 50 per cent. Upon the exercise or deemed exercise of the special warrants, Gran Colombia will have an approximately 53.6-per-cent equity interest in the issued and outstanding shares of Caldas Gold.

. . . Caldas Gold will use commercially reasonable efforts to obtain a receipt for a short-form prospectus on or prior to Sept. 21, 2020 (DONE!), to qualify the common shares and warrants underlying the special warrants. Until a receipt issued for the prospectus, the special warrants (and any common shares and warrants issued on exercise thereof) will be subject to a hold period under applicable Canadian securities laws expiring on the date that is four months and a day following the closing date.

===

About Gran Colombia Gold Corp.

Gran Colombia 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. (TSX-V: CGC; OTCQX: ALLXF), 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. ("Western Atlas") (TSX-V: WA) (Nunavut {ᑁ –} Meadowbank).

CALDAS website: https://caldasgold.ca/

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TERMS of two placements: (105k upside)*

+ CGC Shares: 2,222,222 special warrants sold at an issue price of $2.25

2,222,222 new shares + 1,111,111 new warrants, with strike price at $2.75. Expiry: until July 29, 2025. Caldas Gold may accelerate the expiry date of the Warrants after July 29, 2023 in the event that the closing price of the Common Shares on the TSX Venture Exchange (or such other exchange on which the Common Shares may principally trade at such time) is greater than CA$2.75 per share for a period of 20 consecutive trading days

+ CGC Gold-linked Debs: $83.1 Million with 200 wts (at C$2.75 strike) per $1,000 Face / so US$100k = 20,000 wts

GOLD LINKED INTEREST could be over 10% p.a:

The CGC Debs are really interesting - and I own a bunch:  They have monthly interest payments calculated at 7.5% per annum.  So: US$100k faces receives (a minimum of) $7500/12= $625 monthly.  But there is an interesting add-in feature, which may/will push up returns if Gold exceeds $1400 an ounce.  CGC will place gold ounces in a Trust acct. and sell it from time to time.  If the price exceeds $1400,  interest payments will be topped up.  Example: if Gold price received is $2000, then rate paid will be: 7.5% x (2000/1400): 10.71%, and $625 x (2000/1400): $893. The top-up amount will be paid on a quarterly basis

83,066 subscription receipts of the Company were sold pursuant to the Offering, at a price of US$1,000 per Subscription Receipt.

  • The Notes bear interest at 7.5% per annum, paid monthly. The first monthly payment following the Conversion Event will be equal to the normal monthly interest payment, plus a fee equal to the amount of interest that would have been paid on each Note had interest accrued thereon from the Closing Date.
  • A portion of the gross proceeds of the Offering (approximately US$12.3 million) will be placed into an escrow account (the “Pre-Expansion Interest Account”) to fund the first two years of interest and pre-Note issuance fee payable to holders while the Marmato Project is under expansion.
  • The Company has agreed to pay a floor price of US$1,400 per ounce of gold as a minimum price (the “Floor Price”) to be realized in calculating the value of the gold in the Gold Trust Account (as defined below); the Company has also agreed to use commercially reasonable efforts to hedge the Floor Price on a rolling four quarters basis.

> https://caldasgold.ca/news-and-investors/press-releases/press-release-details/2020/Caldas-Gold-Announces-Closing-of-US83-Million-Private-Placement-of-Subscription-Receipts/default.aspx

*(note: s.30K + w.15k + w.60k = 105k upside)

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Second Quarter and First Half 2020 Highlights

  • Caldas Gold continued to operate its Marmato mine, albeit at a reduced production rate compared to normal, despite the challenges associated with the COVID-19 national quarantine in Colombia during the second quarter of 2020. Caldas Gold also supported the local communities, providing medical equipment, supplies and sanitation kits to the local hospitals and groceries to families who have been economically affected by the COVID-19 crisis.
     
  • Production in the second quarter of 2020 reflected limitations on the Company’s workforce due to the COVID-19 quarantine, totalling 3,851 ounces of gold, down 38% from the second quarter last year. For the first half of 2020, the Company produced a total of 9,752 ounces of gold and 14,117 ounces of silver compared with 12,472 ounces of gold and 19,917 ounces of silver in the first half last year. With another 1,653 ounces of gold produced in July, up 15% over June, Caldas Gold has adjusted its annual production guidance for 2020 to a range of 23,000 to 26,000 ounces of gold.
     
  • Revenue of $6.4 million in the second quarter of 2020, about 26% lower than the second quarter last year, reflected the COVID-19 impact on production that was somewhat mitigated by the 31% year-over-year improvement in spot gold prices which increased the Company’s realized gold price to an average of $1,691 per ounce sold. For the first half of 2020, revenue amounted to $16.9 million compared with $15.8 million in the first half last year.
     
  • Total cash costs (1) per ounce of $1,371 per ounce in the second quarter of 2020, up from $1,095 per ounce in the second quarter last year,

> MORE: https://caldasgold.ca/news-and-investors/press-releases/press-release-details/2020/Caldas-Gold-Reports-Second-Quarter-and-First-Half-2020-Results/

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BIG MOVE! +23%

Crazy move yesterday on No News (I can find so far)... CGC/ Caldas up 23%

As CGC said several days earlier: "we have successfully raised the funds we need to build Colombia’s next major gold mine.”

xx

(as I said on a Viber chat):

2.97 +0.56 23.2% / 239.3k vol.  My 2nd largest holding. So Wow! 

Bought not long ago at C$2.25, in a package with Free Warrants.  Also got some wts by purchasing CGC. debentures

(For those who are on the recent Meetup call, this company is majority owned by GCM.t, which I mentioned on the call. 

GCM was also up: 6.24 +0.19,  3.1%)

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GCM looks too cheap versus CGC, at: $6.24 / $2.97 = r-210%, inverted, CGC high @ 48%

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: 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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Special Wts, Will be split &  trading on Monday (Sep.28th)

Caldas Gold files final prospectus for offering / 2020-09-21 18:20 ET - News Release

Mr. Mike Davies reports

CALDAS GOLD FILES SHORT FORM PROSPECTUS IN CONNECTION WITH OFFERING OF SPECIAL WARRANTS

Caldas Gold Corp. has filed and obtained a receipt for a final short form prospectus in each of the provinces of Canada, except Quebec, in connection with its $50-million bought deal private placement of 22,222,222 special warrants, completed on July 29, 2020. The prospectus qualifies for the distribution 22,222,222 common shares and 22,222,222 common share purchase warrants, issuable for no additional consideration, upon the deemed exercise of the special warrants. The offering was conducted by a syndicate of underwriters co-led by Scotiabank and Canaccord Genuity Corp.

As a result of obtaining the receipt, the special warrants shall be deemed to be exercised and the common shares and warrants underlying the special warrants will be issued, effective at 5 p.m. Toronto time on Monday, Sept. 28, 2020.

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Will CGC BREAKOUT?  Or slide...

Now that the placement shares sold at $2.25 -wts, start trading?

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CGC group: YTD.: 10dCGC: $2.85 (45.4%), GCM: $6.28, wtB: $4.15 - @ 9.25.2020

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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

 

RATIO: CGC to GCM looks like a "SELL" at about 50% - Now 45%

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HOW MANY WARRANTS? = 17.71 Million @ C$2.75

+ CGC Shares: 2,222,222 special warrants sold at an issue price of $2.25 (1.11Mn wts)

2,222,222 new shares + 1,111,111 new warrants, with strike price at $2.75. Expiry: until July 29, 2025. Caldas Gold may accelerate the expiry date of the Warrants after July 29, 2023 in the event that the closing price of the Common Shares on the TSX Venture Exchange (or such other exchange on which the Common Shares may principally trade at such time) is greater than CA$2.75 per share for a period of 20 consecutive trading days

+ CGC Gold-linked Debs: $83.1 Million with 200 wts (at C$2.75 strike) per $1,000 Face / (so US$83.1 Million = 16.6Mn wts

(footnote on CL's hldg.: 30k + 300k x200= 60k : 90k x$3= C$270k)

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