Gran Colombia Gold Corp. (TSX:GCM) entered into a definitive agreement to acquire remaining 81% stake in Gold X Mining Corp. (TSXV:GLDX) for CAD 97.6 million on May 10, 2020. Pursuant to the agreement, each share of Gold X Mining will be exchanged for 0.500 shares of Gran Columbia. In a related deal, Gran Colombia has submitted a proposal to Guyana Goldfields to acquire all of it's issued and outstanding shares. Gran Colombia will merge with Gold X Mining and Guyana Goldfields. In the combined entity, shareholders of Gran Colombia will own approximately 60% of the combined company, with Guyana Goldfields and Gold X shareholders owning approximately 25% and approximately 15%, respectively, on a basic shares outstanding basis. Post completion, the combined entity will continue as Gran Columbia and will be managed by the current Gran Colombia executive team, with corporate headquarters remaining in Toronto. In case of termination of the transaction, each party shall pay CAD 3.65 million as termination fee.

The transaction closing is subject to the completion of concurrent acquisition of Guyana Goldfields Inc. by Gran Columbia, approval from the shareholders of Gran Columbia, approval from shareholders of Gold X Mining, regulatory approval including approval from TSE and TSX, Gran Colombia common shares to be issued pursuant to the arrangement is exempt from the registration requirements of the U.S. Securities Act pursuant to Section 3(a)(10) thereof, the aggregate number of Gold X common shares in respect of which dissent rights have been validly exercised and not withdrawn shall not exceed 10% of the issued and outstanding Gold X common shares and other customary closing condition. The Board of Directors of Gold X unanimously approved the definitive agreement and recommends that Gold X shareholders vote in favor of the transaction. The arrangement agreement has been negotiated under supervision of, and reviewed and recommended for acceptance, by a special committee of Gold X directors independent of Gran Colombia. The transaction is highly accretive to net asset value per share. Scotiabank, Inc. acted as a financial advisor and Peter Volk of Wildeboer Dellelce LLP acted as a legal advisor to Gran Colombia Gold Corp. in the transaction. John Anderson of Stikeman Elliott LLP acted as a legal advisor and BMO Capital Markets acted as financial advisor and fairness opinion provider to Gold X Mining Corp. and Torys LLP acted as a legal advisor to BMO Capital Markets in the transaction.

Gran Colombia Gold Corp. (TSX:GCM) cancelled the acquisition of remaining 81% stake in Gold X Mining Corp. (TSXV:GLDX) on May 22, 2020. The deal was terminated as Gran Colombia Gold decided to no longer pursue the acquisition of all issued and outstanding common shares of Guyana Goldfields.