Gran Colombia announces second quarter 2011 results

Aug 16, 2011, 07:30 ET from Gran Colombia Gold Corp.

TORONTO, Aug. 16, 2011 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM, GCM.WT, GCM.WT.A) has filed today its interim condensed consolidated financial statements for the three and six months ended June 30, 2011.  The Company's consolidated financial statements, together with its Management's Discussion and Analysis of these results, are available for review on the Company's website at www.grancolombiagold.com and under the Company's profile at www.sedar.com.

The Company reported revenues for its second fiscal quarter of 2011 of US$27.8 million, principally from the sale of 17,533 ounces of gold at an average realized price of US$1,529 per ounce. For the first half of 2011, gold sales amounted to 32,307 ounces and total revenues were US$48.5 million.

For the second quarter ended June 30, 2011, the Company reported a net loss attributed to shareholders of US$11.0 million, or US$0.04 per share, after reflecting a US$4.8 million one-time charge related to the costs of the merger with Medoro Resources (Yukon) Inc. on June 10th. For the first half of 2011, the net loss attributed to shareholders was US$27.7 million, or US$0.12 per share, after reflecting the Medoro merger costs and a US$12.6 one-time charge recorded in the first quarter related to the 2011-2014 equity tax levied on companies in Colombia.

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.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

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.