Gran Colombia Gold Continuing to Negotiate in Good Faith Despite Actions of Illegal Miners in Segovia and Remedios
TORONTO, July31, 2017(GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (the "Company") (TSX:GCM) announced today that it is continuing to execute its contingency plans and to negotiate in good faith with the Mesa Minera of Segovia and Remedios toward formalizing activities of illegal mines operating within its mining title despite the actions being taken by certain illegal miners to disrupt the Company's operations.
Over the last ten days, the Company has been monitoring the actions of the Mesa Minera, a local mining collective comprised in its majority by illegal miners, as they attempted to convene a civil disruption and protest in response to the increased measures being implemented by the Colombian government to restrict illegal mining. Although the Mesa Minera has been in discussion with the various levels of government and the Company since last year, they have not yet been able to reach a resolution. Discussions are ongoing and the Company is committed to achieving its objectives through this process despite the coercive actions of certain local interests.
While the Company's employees are not directly involved in this dispute, the escalation in the civil disruption in recent days has impeded their ability to safely report to work. The Company estimates that approximately 30 to 40 per cent of its workers are currently able to attend. In addition, over the weekend, an explosion damaged a pipeline owned by the Company that supplies water to 1,200 residents in Remedios. The Company is taking appropriate measures and has implemented the necessary security procedures, focusing on critical needs to continue its mining and plant operations while deferring certain development projects. There are also increased numbers of governmental authorities present to aid in controlling the situation. The civil disruption did not have a significant impact on the Company's expected production in July. However, production guidance for the balance of the year may be impacted if the local civil disruption continues for a prolonged 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 in the midst of an expansion and modernization project at its 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 production 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 30, 2017, 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, Please Contact: Mike Davies Chief Financial Officer (416) 360-4653 investorrelations@grancolombiagold.com