LIMA, PERU--(Marketwired - Feb 28, 2017) - STRACON GyM S.A. ("STRACON GyM"), a subsidiary of Graña y Montero Group, announced that today it sold on the Lima Stock Exchange 23,000,000 shares of Red Eagle Mining Corporation ("Red Eagle") (TSX:R)(BLV:R)(RDEMF), representing approximately 8.69% of the outstanding shares of Red Eagle. Following the sale, STRACON GyM continues to hold 10,539,360 shares of Red Eagle, representing approximately 3.98% of the outstanding shares. The aggregate sale price was US$11,500,000 or approximately US$0.50 per share.
The sale followed the successful completion of construction and initial gold production at the San Ramon mine developed by Red Eagle, for which STRACON GyM provided mining services.
STRACON GyM will continue with its contract with Red Eagle, signed in 2015, to operate the San Ramón mining project, located in Antioquia, Colombia.
This is the third sale that the Graña y Montero Group has completed as part of its objective to sell non-strategic assets (up to an amount of US$ 300 million) to fulfill the obligations derived from the termination of the Peruvian Southern Gas Pipeline (GSP). The non-strategic assets that the Graña y Montero Group has put up for sale do not impact the company's business strategy in the medium-to long-term.
STRACON GyM's address is Av. Paseo de la República, No. 4675, Surquillo, Lima, Perú.