Continental Readies Bogota Stock Debut as Gold Resources RiseAndrew Willis
Continental Gold Ltd. is preparing to list shares in Bogota as the outlook improves for its main project in Colombia, according to Chief Executive Officer Ari Sussman.
The Toronto-listed company probably will start trading in Colombia in the fourth quarter and may sell about $20 million in new stock to boost liquidity and expand its investor base, Sussman said in a telephone interview from Colorado. The company is selecting a brokerage firm for the start of trading as it prepares increase gold estimates for its Buritica project.
The north Colombian project’s combined measured and indicated gold resource is set to rise to about 3.5 million ounces in a mid-year report, from 2.8 million now, he said.
“Buritica is a very important project for Colombia and people need the opportunity to invest in it,” Sussman said. “If you look at the precedence in Colombia and Peru when companies list, it always goes better when you have a small issuance.”
Continental would join top local producer Mineros SA as the only gold miners on the Bogota exchange. The industry has been mired in permitting delays and community conflicts.
Mines and Energy Minister Tomas Gonzalez said Continental would receive a modified environmental license by May to develop Buritica, Bogota-based newspaper La Republica reported March 5.
“We’re not expecting anything unfavorable,” Sussman said. “There’s a very good relationship with the regional authority. We’re operating as partners in constant communication.”