Transaction|June 13, 2011
Gran Colombia Gold completes merger with Medoro Resources
Torys acted as counsel to GMP Securities with a team that included Kevin Morris, Michael Pickersgill and Andrew Gray, with assistance from John Emanoilidis.
On June 13, 2011, Gran Colombia Gold Corp. (TSX: GCM) and Medoro Resources Ltd. (TSX: MRS) announced the completion of the arrangement agreement to merge the two companies and create a leading Colombian-focused gold production and exploration company. The combined company continues under the name "Gran Colombia Gold Corporation" and benefits from the current production and expansion potential at the Gran Colombia gold mine (formerly known as the Frontino gold mine) together with the Marmato gold development project, both located on the mid-Cauca gold belt in the vicinity of Medellin, Colombia.
Under the plan of arrangement, each Medoro shareholder will receive 1.20 common shares of Gran Colombia, plus 0.50 of a Gran Colombia common share purchase warrant (each whole warrant, a "warrant") for each Medoro share. Each warrant will be issued under Gran Colombia's warrant indenture dated August 20, 2010 (the warrant indenture) and entitled the holder thereof to acquire one common share of Gran Colombia at an exercise price of C$2.60 per Gran Colombia common share and will expire on August 24, 2015. Outstanding warrants issued under the warrant indenture are now listed on the TSX under the symbol "GCM.WT.A" Holders of Medoro options and Medoro warrants had their securities converted into Gran Colombia securities and obtained Grand Colombia shares and warrants on an equivalent basis.
Gran Colombia and Medoro shareholders each now own approximately 50% of the combined company, respectively on a fully diluted basis.
GMP Securities is the financial advisor to Gran Colombia.
Gran Colombia Gold, headquartered in Toronto, is a gold and silver exploration and development company focused on acquiring, developing and operating properties of merit in Colombia.
Further information is found on Market Wired's website.
Under the plan of arrangement, each Medoro shareholder will receive 1.20 common shares of Gran Colombia, plus 0.50 of a Gran Colombia common share purchase warrant (each whole warrant, a "warrant") for each Medoro share. Each warrant will be issued under Gran Colombia's warrant indenture dated August 20, 2010 (the warrant indenture) and entitled the holder thereof to acquire one common share of Gran Colombia at an exercise price of C$2.60 per Gran Colombia common share and will expire on August 24, 2015. Outstanding warrants issued under the warrant indenture are now listed on the TSX under the symbol "GCM.WT.A" Holders of Medoro options and Medoro warrants had their securities converted into Gran Colombia securities and obtained Grand Colombia shares and warrants on an equivalent basis.
Gran Colombia and Medoro shareholders each now own approximately 50% of the combined company, respectively on a fully diluted basis.
GMP Securities is the financial advisor to Gran Colombia.
Gran Colombia Gold, headquartered in Toronto, is a gold and silver exploration and development company focused on acquiring, developing and operating properties of merit in Colombia.
Further information is found on Market Wired's website.