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Gran Colombia Gold signs letter of intent to spin off Venezuelan assets

Christian Fernsby ▼ | September 3, 2019
Gran Colombia Gold Corp. announced today that that it entered into a letter of intent (“LOI”) on August 31, 2019 with Western Atlas Resources Inc. outlining the terms on which it intends to spin off its Venezuelan assets in exchange for US$20 million in common shares of Western Atlas and also acquire up to a 19.9% equity interest in Western Atlas by way of a CA$1.4 million subscription into Western Atlas’ proposed private placement.
Gran Colombia Gold
Canada   Western Atlas Resources
The LOI further contemplates that upon closing of the Private Placement, Miguel de la Campa, Vice Chairman of Gran Colombia, will be appointed to the Board of Western Atlas, and that Gran Colombia will also be entitled to appoint one additional member to the Board of Western Atlas at its next annual general meeting.

Topics: Venezuela

Serafino Iacono, Executive Chairman of Gran Colombia, currently serves as non-executive Chairman and beneficially owns/controls approximately 21% of the outstanding shares of Western Atlas.

Gran Colombia and Western Atlas will enter into definitive agreements with respect to the Private Placement and the Increible Transaction following completion of satisfactory due diligence by the parties.

The closing of the Private Placement is expected to take place as soon as reasonably practicable following the execution and delivery of the subscription agreement.