Gran Colombia spins out Zancudo
Gran Colombia (TSX: GCM; OTCQX: TPRFF) said today it signed a letter of intent with ESV Resources (TSXV: ESV.H) to spin out its interest in the Zancudo Project.
The mid-tier gold producer will also subscribe for CA$3,000,000 of subscription receipts in a non-brokered private placement with ESV.
The Zancudo Project consists of a 1,052-hectare mining concession area located in the Titiribi mining district in Antioquia, Colombia, about 27 kilometers southwest of Medellin. Zancudo comprises a historical silver-gold mine located in the Middle Cauca Gold Belt. Gran Colombia acquired Zancudo in 2010 and completed a 14,000 meter drilling program carried out in 2011 and 2012.
Serafino Iacono, Executive Chairman of Gran Colombia, liked ESV's focus on silver.
“In light of the bullish outlook for silver, we see the acquisition of an investment in ESV as a tremendous opportunity to participate in a new vehicle that is turning its attention to becoming a silver focused company looking to offer its shareholders exposure and leverage to the precious metal," said Iacono. "We also see the spin out of our interest in the Zancudo Project as an opportunity to create value for our shareholders in this undervalued silver-gold asset. We will be providing in-country operational expertise to ESV to advance their projects in Colombia, including an exploration program planned for the Guia Antigua Project following completion of the transactions and financing by ESV.”
Gran Colombia is a Canadian-based company with its primary focus in Colombia.