Canadian Mining Journal


Gran Colombia terminates bid for Guyana Goldfields

Gran Colombia Gold (TSX: GCM; US-OTC: TPRFF) has walked away from its proposed acquisition of Guyana Goldfields (TSX: GUY; US-OTC: GUYFF) and terminated its plan of arrangement for a three-way merger with Gold X Mining (TSXV: GLDX; US-OTC: SSPFX).

Gran Colombia had envisioned creating a larger, South America-focused gold producer with operations in Colombia and Guyana and had offered 0.142 of a share for each Guyana Goldfields share, which worked out to a 90¢ per share valuation (for an implied overall valuation of about $155 million). Gran Colombia’s offer included a US$15 million loan provision to Guyana Goldfields for ongoing operations at its Aurora underground project.

At the same time, Gran Colombia had signed a definitive business combination agreement to acquire the remaining 81% of Gold X Mining it did not already own through an offer of 0.5 of a Gran Colombia share for each Gold X share, implying a value of $3.17 per share (an implied valuation of about $100 million for the shares it doesn’t own) as of the proposed deal announcement.

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