TORONTO, Jan. 29, 2013 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced that it has entered into an asset purchase agreement with Industrias Infinito S.A., a wholly-owned indirect subsidiary of Infinito Gold Ltd. (TSX-V: IG) ("Infinito"), to purchase certain mine processing equipment for cash consideration of US$4.3 million.
As announced on October 30, 2012, Gran Colombia closed a US$100 million financing with the proceeds to be used for the Pampa Verde project at the Company's Segovia Operations in Colombia, which includes the construction of a 2,500 tpd mill, the development of a new mechanized underground mine to access new vein deposits as well as improve access to the existing mines. The equipment being purchased from Infinito includes certain of the primary components of a Carbon In Leach (CIL) process plant.
"The Pampa Verde project team is progressing well in its objective to complete the project on-time and under budget," said Vicente Mendoza, Chief Project Director at Gran Colombia Gold. "We are very pleased to have been able to secure a deal with Infinito to acquire this equipment for our new 2,500 tpd mill, including feeders, SAG and ball mills and motors, and other equipment to complete the CIL circuit".
Under the terms of the agreement, the purchase price is payable to in two equal installments, with the first installment due on or before TSX Venture Exchange acceptance of the transaction for Infinito and the balance due on or before the earlier of the date that is 90 days after such acceptance or the date by which the majority of the equipment is removed from its current storage site in Nicaragua.
About Gran Colombia Gold
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato operations.
Source: Gran Colombia Gold Corp.