The company intends to use the net proceeds to accelerate exploration at its Segovia gold operation in Antioquia, Colombia, over and above the 20,000m of drilling already planned for 2019.

"We want to drill over the next two years what would have taken us five years to do at the rate of 20,000m a year. This allows us to accelerate our exploration with minimal share dilution," CFO Mike Davies told Mining Journal.

Funding from the raise will allow Gran Colombia to accelerate exploration for extensions of the three veins it currently mines and 24 other known veins in its Segovia mining title. Using an additional four to five drilling rigs the company aims to drill up to 80,000m over the next two years.

Segovia produced more than 193,000 ounces of gold in 2018 for Gran Colombia, and with its financial position continuing to improve it has begun focusing on blue-sky potential to potentially increase its production and extend Segovia's mine life.

On a day when the gold price saw a significant pullback, shares in Gran Colombia (TSX:GCM) fell almost 19% to $3.57 valuing the company at $205 million.