Canada-based gold producer Gran Colombia Gold has completed the acquisition of Gold X Mining, by way of a statutory plan of arrangement, effective June 4.
Resultantly, Gold X became a direct and wholly-owned subsidiary of Gran Colombia, affording the group control of the Toroparu gold project, in Guyana.
Pursuant to the plan of arrangement, each holder of Gold X shares is entitled to receive 0.6948 of a common share in the capital of Gran Colombia for each Gold X share held immediately prior to the effective time.
The corporation plans on delisting Gold X shares from the TSX-V as soon as practicable.
Gran Colombia chairperson Serafino Iacono says with the closing of the Gold X acquisition the company has created a new midtier Latin-American gold producer with a complementary asset portfolio.
On a combined basis, the company’s Segovia Operations, located in Colombia, and Toroparu, Gran Colombia now has a measured and indicated gold resource of 8.7-million ounces and another 4.3-million ounces of gold in the inferred category.
Gran Colombia will be updating the mineral resource estimate for Toroparu to incorporate a new geologic model and project optimisation work that was recently done by Gold X.
The company explains that with Gold X having $6-million cash on hand by closing of the acquisition, an updated preliminary economic assessment as a next stage of development can be fully funded.