TSX-listed Gran Colombia Gold has completed the previously announced spin-off of its Marmato mining assets, in Colombia, through a reverse takeover transaction with Bluenose Gold.
The resulting issuer is named Caldas Gold and is expected to start trading on the TSX-V on Friday.
Gran Colombia owns about 72% of Caldas Gold.
“With total proceeds from the equity financings of approximately C$21.6-million, Caldas Gold is well capitalised to take the Marmato project forward as it completes the prefeasibility study for the underground mine expansion in the first half of 2020 and continues drilling the Deep Zone mineralisation,” said Gran Colombia executive chairperson Serafina Iacono.
The Marmato mining assets comprise the existing producing underground gold mine, the existing 1 200 t/d processing plant and the area encompassing the Deeps mineralisation, all located within the mining licence area referred to as Zona Baja.
The existing underground mine at Marmato produced 25 750 oz of gold in 2019, representing a 3% increase over 2018, and Caldas Gold expects to produce between 32 000 oz and 37 000 oz of gold in 2020.