Gran Colombia Gold Corp. intends to spin off its Marmato gold-silver mine in Colombia into a separately listed, special-purpose vehicle in which it will retain a majority stake.
The company said Sept. 16 that many shareholders had indicated they would not support an equity financing, and the company is reluctant to add significant debt back onto its balance sheet.
Gran Colombia aims to provide funding for ongoing exploration and development of underground mining assets at Marmato, including building a new processing plant and additional tailings storage facilities to support increased production.
The company expects to file a preliminary economic assessment for an underground expansion at Marmato before the end of 2019, after which it will immediately proceed with a pre-feasibility study.
Executive Chairman Serafino Iacono said the spinoff decision will strengthen Gran Colombia's financial liquidity and its ability to focus on further exploration and development of its Segovia gold-silver operations in Colombia.
Gran Colombia recently outlined plans to sell subsidiary Medoro Resources International Ltd., which holds mining rights to the Lo Increible 4a and 4b gold project in Venezuela.
