SOURCE: Gran Colombia Gold Corp.

Gran Colombia Gold Corp.

October 09, 2015 18:17 ET

Gran Colombia Gold Announces Third Quarter Production and Details of October 2015 Interest Payments on Senior Debt

TORONTO, ON--(Marketwired - October 09, 2015) - Gran Colombia Gold Corp. (TSX: GCM) (OTC PINK: TPRFF) announced today that its total gold production for the third quarter of 2015 was 34,339 ounces, up 20.5% from the second quarter of 2015. The Company produced a total of 27,948 ounces of gold and 33,505 ounces of silver from its underground mining operations at Segovia and 6,391 ounces of gold and 9,514 ounces of silver at Marmato during the third quarter of 2015. This brings total gold production for the first nine months of 2015 to a total of 86,087 ounces of gold and 101,313 ounces of silver, up 24.8 % and 8.5% respectively, over the same period in 2014. The Company expects to release its third quarter 2015 financial results on or about November 12, 2015.

The Company also confirmed today that its contract mining operations at Segovia have been disrupted by external security challenges from a local criminal organization during the first week of October, specifically targeting the contract miners at the Providencia and El Silencio mines. To address the security concerns, the local and national governments have positioned additional officers and soldiers on site and in the town of Segovia. Production from the Company's contract miners has now partially resumed and the Company expects it to be fully restored within the next week. The impact of this disruption on Company's production in October is still being fully assessed.

October Interest Payments

The Company also announced today the details of the interest payments it will make on October 30, 2015 on its Senior Secured Gold-Linked Notes due 2017 and its Senior Unsecured Silver-Linked Notes due 2018.

Gold Note holders of record as of October 20, 2015 will receive approximately US$8.22 per US$1,000 face value of the Gold Notes, leaving a balance of interest in arrears after the October payment of US$17.26 (approximately two months) per US$1,000 face value of the Gold Notes. Silver Note holders of record as of October 20, 2015 will receive approximately US$4.11 per US$1,000 face value of the notes which will be applied against the interest in arrears from June 30, 2015, leaving a balance of US$12.74 per US$1,000 face value of Silver Notes after the October payment. These payment amounts are derived based on a 30-day period from October 1, 2015 through October 30, 2015, inclusive.

The interest payments are being made by the Company while we continue work on the comprehensive debt restructuring proposal previously announced on September 29, 2015. The Company will be providing additional information regarding the proposed transaction in due course.

About Gran Colombia Gold Corp.

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. Gran Colombia is currently advancing a project to develop a modern, large-scale, gold and silver mine at its Segovia operations.

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information:

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 31, 2015, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

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