Caldas Gold changes name to Aris Gold after a CA$85 million private placement
|Image credit: Caldas Gold.|
(Kitco News) - Caldas Gold (TSX-V: CGC) (OTCQX: ALLXF) announced today that it has commenced a private placement financing with a group of investors principally referred by Aris Gold that will result in changes to the management and the board of directors of the company, as well as a change in the company’s name to “Aris Gold Corporation”.
Once the financing is completed, Gran Colombia Gold is expected to become an approximately 45% shareholder of Caldas Gold and will have the right to nominate two directors to the Caldas Gold Board at completion of the Aris Transaction.
Under the financing, the company has agreed to sell, on a non-brokered private placement basis, an aggregate of 37,777,778 subscription receipts of the company, at a price of CA$2.25 each, for aggregate gross proceeds to the company of CA$85 million. The financing is expected to close on or about November 27, 2020.
The company will be led by a highly experienced Board with new nominees, including Ian Telfer as Chair, David Garofalo, Peter Marrone, Attie Roux, Daniela Cambone and Neil Woodyer. Gran Colombia’s nominees will be Serafino Iacono and Hernan Martinez. In addition, Frank Giustra will be a Strategic Advisor.
The management team will be led by Neil Woodyer, as CEO, with the corporate head office based in Vancouver, BC.
Aris Gold’s vision is to create a diversified precious metals mining company through a disciplined growth strategy with a focus on stakeholder value creation from free cash flow generation and the implementation of industry-leading sustainability programs.
The incoming team has a proven track record of building successful precious metals mining companies, including the founding of Leagold Mining (now Equinox Gold), Endeavour Mining, Wheaton River Minerals (which became Goldcorp and now Newmont), Wheaton Precious Metals and Yamana Gold.
Following completion of the Aris Transaction, the Marmato gold mine (Colombia) license extension process will have been completed and the Marmato Deeps Zone expansion project will be fully-financed ahead of construction start, which is expected in H2 2021.
The company is expected to have a cash balance of US$190 million and approximately 137.6 million issued shares outstanding upon completion of the Aris Transaction.
The private placement price per subscription receipt of CA$2.25 is a 14% premium to the closing price of Caldas Gold’s common shares on Friday November 20, 2020.
Completion of the Offering is subject to receipt of all required regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.