TORONTO, Sept. 27, 2011 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has filed a Notice of Intention to commence a normal course issuer bid with the Toronto Stock Exchange for its common shares listed on the TSX (the "Common Shares"). Under the terms of the bid, which is subject to acceptance by the TSX, the Company will have the right to purchase for cancellation up to a maximum of 37,993,493 Common Shares through the facilities of the TSX. This amount represents approximately 10% of the public float of the Common Shares issued and outstanding as of September 23, 2011, determined in accordance with the applicable rules of the TSX. There were 389,686,757 Common Shares issued and outstanding as of September 23, 2011. Management of the Company will determine the actual number of Common Shares that may be purchased and the timing of any such purchases, subject to compliance with applicable TSX rules. Daily purchases will be limited to 188,842 Common Shares, other than block purchase exceptions. Purchases made pursuant to the bid will be made in the open market through the facilities of the TSX and the price that the Company will pay for any such Common Shares will be the market price at the time of the acquisition.
The Company is proposing to commence the bid on September 30, 2011, and have it remain open until the earlier of September 29, 2012 or the date on which the Company has purchased the maximum number of Common Shares permitted under the bid. The Company has not purchased any Common Shares during the previous year pursuant to any issuer bid.
The Company intends to make the bid because it believes: (i) that the Common Shares may be undervalued from time to time in relation to its current and future business prospects; and (ii) that Common Shares may become available during the period of the bid at prices that would make the purchase of such Common Shares for cancellation an appropriate use of available funds and in the best interests of the Company and its shareholders.
About Gran Colombia Gold Corp.
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 six underground mines in operation. In addition, Gran Colombia is also developing a large-scale, open-pit gold and silver mine at Marmato. The Company also has a highly-prospective land position in Colombia as well as an advanced stage property in Venezuela and earlier stage properties in Mali.
Cautionary Statement on Forward-Looking Information:
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. 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. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaim, 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.