TORONTO, Dec. 8, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM) announced today that it has purchased for cancellation an additional US$500,000 principal amount of senior unsecured silver-linked notes at an average price of US$88.  To date, the Company has repurchased a total of US$1,368,000 principal amount of senior unsecured silver-linked notes at an average price of US$95.38 under its previously announced normal course issuer bid with the Toronto Stock Exchange.

The Company is funding the repurchase of the Notes with the proceeds from the sale of its silver production in order to capitalize on the current high market prices for silver. Given the principal amount of each Note is linked to the US$ financial equivalent of 66.7 ounces of silver based on US$15 per ounce, buying back the Notes using the proceeds from the Company's silver production at current spot prices of approximately US$32 per ounce allows the Company to substantially reduce its cost of borrowing by monetizing its silver inventories and future production.

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 six underground mines in operation.  In addition, Gran Colombia is also developing a large-scale, open-pit gold and silver mine at Marmato.  The Company also has a highly-prospective land position in Colombia as well as an advanced stage property in Venezuela and earlier stage properties in Mali.

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. 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. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaim, 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.