Gran Colombia Gold announces purchase of mine processing equipment for new Pampa Verde project at Segovia
TORONTO, Jan. 29, 2013 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced that it has entered into an asset purchase agreement with Industrias Infinito S.A., a wholly-owned indirect subsidiary of Infinito Gold Ltd. (TSX-V: IG) ("Infinito"), to purchase certain mine processing equipment for cash consideration of US$4.3 million.
As announced on October 30, 2012, Gran Colombia closed a US$100 million financing with the proceeds to be used for the Pampa Verde project at the Company's Segovia Operations in Colombia, which includes the construction of a 2,500 tpd mill, the development of a new mechanized underground mine to access new vein deposits as well as improve access to the existing mines. The equipment being purchased from Infinito includes certain of the primary components of a Carbon In Leach (CIL) process plant.
"The Pampa Verde project team is progressing well in its objective to complete the project on-time and under budget," said Vicente Mendoza, Chief Project Director at Gran Colombia Gold. "We are very pleased to have been able to secure a deal with Infinito to acquire this equipment for our new 2,500 tpd mill, including feeders, SAG and ball mills and motors, and other equipment to complete the CIL circuit".
Under the terms of the agreement, the purchase price is payable to in two equal installments, with the first installment due on or before TSX Venture Exchange acceptance of the transaction for Infinito and the balance due on or before the earlier of the date that is 90 days after such acceptance or the date by which the majority of the equipment is removed from its current storage site in Nicaragua.
About Gran Colombia Gold
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato operations.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 28, 2012 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Gran Colombia Gold Corp.