facebook
linkedin
twitter
About Us
  • BFSI
  • Energy
  • Infocom
  • Mining
  • Venture
  • Industry
  • Travel
  • Civic
  • Food, Health, Ag
  • Real Estate
  • Responsibility
  • Economy
  • Law & Justice
  • Interview
  • Analysis

Gran Colombia Gold to Resume Paying Interest on Senior Debt

Posted OnJanuary 24, 2015
By :Loren Moss
Comment: 0
Tag: caldas, debentures, default, gcm, gmp, gold, marmato, notes debt, restructuring, segovia, silver, srk, tprff

Struggling Gran Colombia Gold Corp. (TSX: GCM, OTC: TPRFF) announced today that it has negotiated a favorable contract amendment with the primary contract miner at its Segovia Operations and the company will resume monthly interest payments on February 28, 2015 on its Senior Secured Gold-Linked Notes due 2017. The company also intends to commence paying interest at the end of February on its Senior Unsecured Silver-Linked Notes due 2018 on a monthly basis, instead of the current semi-annual coupon payments. Total combined monthly interest payments on the senior debt will amount to approximately US$1.16 million. The weaker Colombian peso has provided the opportunity and the flexibility for the company to pay what it called “a fair and reasonable price” to its contract workers, continue to service payment plans to its local suppliers and to resume payment of interest on its senior debt.

Gran Colombia Gold 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.

The company indicated in a statement that it has continued to take the necessary steps to improve operating cash flow from its Segovia Operations. Gold production at the Segovia Operations in the fourth quarter of 2014 was 22,427 ounces, up 21% from the third quarter of 2014, driven by an increase in production sourced from the contract miners which accounted for 86% of the fourth quarter production. As this will be a key source of material for the company as it continues with mine development and mechanization of operations in the company-operated mining areas at the Segovia Operations in 2015, the company has negotiated a contract amendment with the primary contract miner that is expected to generate cost savings, based on current production and gold prices, of approximatelyUS$700,000 to US$900,000 per month commencing today. The company is continuing to work with SRK Consulting (U.S.) Inc. (“SRK”) to optimize its mine plan at the Segovia Operations to improve future cash flow.

The company will continue to work closely with its financial advisor, GMP Securities L.P., as well as gold and silver note-holders to meet all its commitments and matters related to the capital structure of the company, its future debt service abilities, including the associated principal repayments, put options of the Gold-Linked Notes and interest currently in arrears on both Gold-Linked and Silver-Linked Notes. The company expects that upon receipt of the optimized mine plan at Segovia from SRK, it will bring forward a comprehensive restructuring plan to all stakeholders to include associated consent solicitations required for changes to material terms of the note trust indentures.

The company also announced today that its total gold production for the fourth quarter of 2014 was 29,043 ounces, up almost 18% over the third quarter of 2014. Annual gold production for 2014 amounted to 98,622 ounces compared with 102,792 in the prior year. Segovia’s annual gold production in 2014 was 74,506 ounces, down from 80,226 ounces in 2013, which the company is addressing through its mechanization and mine development program in 2015. Annual gold production at the Marmato underground mine increased to 24,116 ounces in 2014 from 22,566 ounces in 2013. Total silver production from both mines in 2014 was 125,716 ounces compared with 153,649 ounces in 2013.

Photo of Gran Colombia’s Marmato, Caldas gold mine site north of Manizales, courtesy of Gran Colombia Gold

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transferred to MailChimp ( more information ) DISCLAIMER: Protección de Datos Personales Artículo 15 de la Constitución Política de Colombia, ley 1581 de 2012 y decreto 1377 de 2013.
We will never spam you or share your email address ¡Nunca Jamás!

Share the news!

  • Facebook
  • Twitter
  • Print
  • Email
  • WhatsApp
  • LinkedIn
  • Skype

Related

Share your thoughts:

comments

Loren Moss
About the Author
Loren Moss is the founder and publisher of Finance Colombia. He has over 20 years of international business experience, including over a decade of experience in securities, insurance, and commercial real estate, at the institutional and international level.
  • google-share
Previous Story

Neuberger Berman Opens 2nd Latin American Office in Bogotá

Next Story

Latin American Fixed Income Investors Forum To Host Central Bankers, Sovereign Reserve Fund Managers

Related Posts

Mineros Atico El Roble Chocó Mine mina
0

Atico Mining Announces Q4 Results Were Down, But 2020 Annual Results Were Positive For El Roble Copper & Gold Mine In Chocó, Colombia

Posted OnFebruary 12, 2021
, ByLoren Moss
Alleged members of the “Los Call Center” crime gang prosecuted for over $1.4 million USD of credit card fraud
0

Colombian Prosecutors Break Up “Los Call Center” Credit Card Mafia

Posted OnDecember 1, 2020
, ByLoren Moss
0

Atico Mining Announces Q3 Operating Results For Its El Roble Mine In Chocó, Colombia

Posted OnNovember 3, 2020
, ByLoren Moss

Share your thoughts: Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.





RECENT

POPULAR

COMMENTS

Tecnoglass window-making factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)

Tecnoglass To Hold Q1 2021 Earnings Call The Morning Of May 7

Posted On April 13, 2021

Etek Launches Identity & Access Management Service

Posted On April 13, 2021

GCA Airlines Files To Fly New Routes To Bucaramanga, Santa Marta, San Andrés & Pereira, Colombia

Posted On April 13, 2021
PharmaCielo horticultural worker harvests THC dominant and unique cultivar (CNW Group/PharmaCielo Ltd.)

Colombian Cannabis Cultivator PharmaCielo Closes $13.5 Million CAD Capital Raise

Posted On April 13, 2021
Photo from Twitter

Support for Colombian Fugitive Alex Saab Turns Out To Be Nigerian Troll Farm

Posted On April 13, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020

AVIANCA IS BANKRUPT

Posted On May 10, 2020

In Deepening Crisis At EPM, Labor Union Demands CEO Explain Private Gym, Luxury Office Remodel Despite Austerity Orders

Posted On August 25, 2020

Declan Ryan Says Viva Air Not Being Treated Fairly By Colombian Government: Exclusive Interview

Posted On September 3, 2020
Avatar

[…] 2020 — SINPRO, EPM’s largest...

Posted On April 12, 2021
Avatar

[…] Sky Airline each may operate 4...

Posted On April 6, 2021
Avatar

[…] didn’t know that; that...

Posted On April 6, 2021
Avatar

[…] during his mayoral campaign...

Posted On April 6, 2021
Avatar

[…] existing Viva aircraft are...

Posted On March 30, 2021

Watch This!

Book With Us

Consider Advertising With Us

Click here to visit Expat Group's English site

Subscribe Free

don't forget to include "http://"
* = required field
Your Background / Function








unsubscribe from list

RECENT

POPULAR

COMMENTS

Tecnoglass window-making factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)

Tecnoglass To Hold Q1 2021 Earnings Call The Morning Of May 7

Posted On April 13, 2021

Etek Launches Identity & Access Management Service

Posted On April 13, 2021

GCA Airlines Files To Fly New Routes To Bucaramanga, Santa Marta, San Andrés & Pereira, Colombia

Posted On April 13, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020
copa airlines

Copa Airlines Raising $350 Million USD War Chest Via Private Notes Offering

Posted On April 27, 2020
Avatar

[…] 2020 — SINPRO, EPM’s largest...

Posted On April 12, 2021
Avatar

[…] Sky Airline each may operate 4...

Posted On April 6, 2021
Avatar

[…] didn’t know that; that...

Posted On April 6, 2021

Watch This!

Contact Us (Click the image):

Book With Us

Pages

  • About Us
  • Colombia Events, Conferences, Festivals and Important Dates
  • Contact Us
  • main
  • Media Partnerships
  • Privacy Policy
  • Whatsapp test page
Copyright 2014-2020 Finance Colombia All Rights Reserved. We may earn commissions from qualifying purchases.
WhatsApp us
loadingCancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.