TORONTO, Sept. 23, 2011 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has purchased for cancellation, to date, a total of US$868,000 principal amount of senior unsecured silver-linked notes at an average price of US$99.50 under its previously announced normal course issuer bid with the Toronto Stock Exchange.
The Company is funding the repurchase of the Notes with the proceeds from the sale of its silver production in order to capitalize on the current high market prices for silver. Given the principal amount of each Note is linked to the US$ financial equivalent of 66.7 ounces of silver based on US$15 per ounce, buying back the Notes using the proceeds from the Company's silver production at spot prices of approximately US$41 per ounce allows the Company to substantially reduce its cost of borrowing by monetizing its silver inventories and future production.
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.
SOURCE Gran Colombia Gold Corp.