SiMINE
Simulated Training and Digital Technologies for the Mining Sector
Canadian based mid-tier producer Gran Colombia Gold has bought 19.89% interest in Western Atlas Resources, which focuses on the acquisition and development of scalable precious metals projects.
Canadian based mid-tier producer Gran Colombia Gold has bought 19.89% interest in Western Atlas Resources, which focuses on the acquisition and development of scalable precious metals projects.
The transaction was completed via the first tranche of Western Atlas’ non-brokered private placement.
The private placement’s first tranche included 22,255,883 flow through and non-flow through units, and Gran Colombia invested for 15,910,588 units for a total amount of C$1.35m.
In addition, Gran Colombia has purchased an aggregate of 15,910,588 common shares and 7,955,294 share purchase warrants of Western Atlas.
The common shares and share purchase warrants acquired through the closing of the private placement first tranche are for business and investment purposes.
The aggregate gross proceeds of private placement’s first tranche were C$1.9m ($1.4m), which will be used by Western Atlas for a drilling programme at its Meadowbank project and general and administrative purposes.
It also intends to use the proceeds to seek restitution of the Increible Project by the current interim Government of Venezuela.
In relation to the completion of the first tranche, Gran Colombia vice-chairman Miguel de la Campa has been appointed to Western Atlas board.
Following the announcement of the acquisition, Gran Colombia’s stock price rose on the Toronto Stock Exchange from CAD$5.35 to CAD$5.46 a share, a 2% rise.
GlobalData's TMT Themes 2021 Report tells you everything you need to know about disruptive tech themes and which companies are best placed to help you digitally transform your business.
Find out moreThis has given the company a current market capitalisation value of CAD$271.76m and has continued Gran Colombia’s stock rise throughout 2019, having started the year on CAD$2.95 a share.
Furthermore, the two companies have signed a share purchase agreement with Medoro Resources International.
As part of the agreement, Gran Colombia will sell all of the outstanding shares of its indirect wholly-owned subsidiary Medoro to Western Atlas.
Medoro holds mining rights to the Lo Increible 4A and Lo Increible 4B concessions near the town of El Callao, Bolivar State, Venezuela.
Simulated Training and Digital Technologies for the Mining Sector
Radar for Mining Applications
Remote-Controlled Demolition Robots and Machines