Gran Colombia said it would issue about 3.3 million units at C$4.60 each, which represented a 4% discount to the five-day volume weighted average for the period ended October 29. Each unit comprises one Gran Colombia common share and one share purchase warrant exercisable into to a full common share at a strike price of $5.40 for four years.

The company will use the money for general working capital and corporate purposes.

The company operates the Segovia and Marmato mines in Colombia, where it plans to ramp up exploration at Segovia with 70,000m of drilling in the next 18 months.

The company plans to spin out the Marmato mine into a separately listed company, in which Gran Colombia will retain control. Among other things, it will use the funds to undertake a major underground expansion at Marmato.

The company produced 218,000oz gold in 2018, and the two operations are on track to achieve 240,000oz this year.

The company's Toronto-listed shares (TSX:GCM) rose more than 5% on Wednesday to C$4.94, which is trending towards the higher-end  of the 12-month range of $2.27-$5.91. The company has a market capitalisation of $241 million.