Gran Colombia Gold Completes Redemptions of 2020 and 2024 Debentures

TORONTO, May 14, 2018 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (the “Company” or “Gran Colombia”) (TSX:GCM) announced today that it has completed the previously announced redemptions of its Senior Secured Convertible Debentures due 2020 and 2024 (collectively, the “Senior Debentures”). The Company redeemed a total of $86.3 million aggregate principal amount of Senior Debentures at par plus accrued and unpaid interest. Since the closing of the debt offering on April 30, 2018, holders of Senior Debentures have elected to convert a further $4.6 million aggregate principal amount of Senior Secured Debentures into common shares, decreasing the ultimate amount required to be redeemed. Including the cash in trust in the sinking fund for the Senior Debentures which has now been released, the Company’s cash position has been bolstered by $14.2 million through the Company’s refinancing of its Senior Debentures and the elections by holders to convert their debt into common shares.

As of today, the Company’s capital structure is as follows:

1. Represent Units issued by the Company on April 30, 2018 (the “Closing Date”) pursuant to the Offering. Each Unit consists of US$1,000 principal amount of Notes and 124 Warrants. The Notes and Warrants comprising each Unit will not separate until 45 days following the Closing Date. The Notes and the Warrants are also subject to a hold period equal to four months and a day following the Closing Date and the Company will take commercially reasonable steps to obtain approval for the listing and trading of the Notes and the Warrants on the TSX by the end of the hold period.

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 several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing to focus on exploration, expansion and modernization activities at its high-grade Segovia Operations.

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 the Company’s balance sheet and anticipated business plans or strategies. 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 27, 2018, 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.

For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com