Gran Colombia acquires 20% of Western Atlas, seeks restitution from Venezuela
Latin American gold producer Gran Colombia acquired a 19.89% equity investment in Western Atlas Resources.
Gran Colombia picked up shares through the first tranche of a non-brokered private placement completed today by Western Atlas.
Gran Colombia said it intends to spin off its Venezuelan assets, Medoro Resources International, into a separate listed vehicle and sell its interest to Western Atlas.
"Medoro is an indirect wholly-owned subsidiary of [Gran Colombia] which held mining rights to the Lo Increible 4A and Lo Increible 4B concessions near the town of El Callao, Bolivar State, Venezuela (the “Increible Project”) and is seeking their restitution by the current interim government of Venezuela," wrote Gran Colombia in a news release.
Outside of seeking legal remedy, the funds raised by Western Atlas will also be used to run a drill program at Meadowbank project.
Miguel de la Campa, Vice Chairman of Gran Colombia, was appointed to the board of Western Atlas after the placement.