TORONTO, Dec. 13, 2019 /CNW/ - Continental Gold Inc.
(TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is
pleased to announce that it has closed its previously-announced
US$50 million convertible debenture
financing (the "Financing") with an affiliate of Zijin Mining Group
Co., Ltd. ("Zijin"). The Financing was previously announced on
December 2, 2019 as part of the
pending arrangement between Continental and Zijin. The debenture
issued in connection with the Financing has a term of five years at
a 5% interest rate, payable semi-annually in arrears. The debenture
is also convertible at the holder's option into common shares of
Continental at a conversion price equal to C$4.55 per share. The proceeds of the
Financing will be used to advance construction of the
Buriticá Project.
In addition, the Company announces that US$25 million of its outstanding convertible
debentures, which were subject to a previously-announced notice of
redemption, have been converted into 11,027,500 common shares of
the Company at a conversion price of C$3.00 per share.
About Continental Gold
Continental Gold is the leading
large-scale gold mining company in Colombia and is presently developing it's 100%
owned Buriticá project in Antioquia. Buriticá is one of the largest
and highest-grade gold projects in the world and is being advanced
utilizing best practices for mine construction, environmental care
and community inclusion. Led by an international management team
with a successful record of discovering, financing and developing
large high-grade gold deposits in Latin
America, the Buriticá project is on schedule with mechanical
completion anticipated during the first quarter of 2020. Additional
details on Continental Gold's suite of gold exploration properties
are also available at www.continentalgold.com.
Forward-Looking Statements
This news release contains
or refers to forward–looking information under Canadian securities
legislation, including but not limited to statements regarding the
proposed use of proceeds of the Financing, the development and
construction of the Buriticá project, advancing the Buriticá
project, the economic effect of the mine, and future plans and
objectives of the Company, and is based on current expectations
that involve a number of significant business risks and
uncertainties. Forward–looking statements are subject to other
factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on
forward–looking statements. Factors that could cause actual results
to differ materially from any forward–looking statement include,
but are not limited to, an inability to advance the Buriticá
project to the next level, failure to convert estimated mineral
resources to reserves, capital and operating costs varying
significantly from estimates, the preliminary nature of
metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and the other risks involved in the mineral exploration
and development industry. Specific reference is made to the most
recent Annual Information Form on file with Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward–looking statements. All of the
forward–looking statements made in this news release are qualified
by these cautionary statements, and are made as of the date hereof.
The Company assumes no responsibility to update them or revise them
to reflect new events or circumstances other than as required by
law.
SOURCE Continental Gold Inc.