Zancudo Project of Gran Colombia Gold Corp. (TSX:GCM) and Guia Antigua Project entered into a letter of intent to acquire ESV Resources Ltd. (TSXV:ESV.H) in a reverse merger transaction for CAD 15.1 million on September 23, 2020. Zancudo Project of Gran Colombia Gold Corp. (TSX:GCM) and Guia Antigua Project entered into definitive agreement to acquire ESV Resources Ltd. (TSXV:ESV.H) in a reverse merger transaction on November 20, 2020. Under the terms of the transaction, shareholders of the Guia Antigua Project will be issued 15 million common shares of ESV Resources and concurrently Gran Colombia Gold Corp. will be issued 27 million common shares of ESV Resources in consideration for the assignment of its interest in the Zancudo Project. All common shares issued to Gran Colombia will be subject to a voluntary pooling arrangement from which one quarter of the shares will be released on each of December 28, 2020, March 27, 2021, June 27, 2021 and September 27, 2021. Gran Colombia Gold Corp. entered into an option agreement with IAMGOLD Corp. with respect to Zancudo Project and ESV Resources has agreed to be bound by the terms of the option agreement with IAMGOLD. The parties intend to complete a non-brokered private placement financing to raise up to CAD 7 million through the issuance of up to 15.6 million subscription receipts of the Guia Antigua vendor. Gran Colombia Gold Corp. will subscribe for CAD 3 million of the non-brokered private placement. As of October 30, 2020, the private placement funding of Guia Antigua vendor will be increased to 18.7 million subscription receipts for gross proceeds of up to CAD 8.4 million. The proceeds of the non-brokered private placement will be held in escrow, pending ESV Resources receiving all applicable regulatory approvals and completing the transaction. Upon satisfaction of the escrow conditions, immediately prior to completion of the transaction, each subscription receipt will automatically convert into one common share of the Guia Antigua Vendor for no additional consideration and will be exchanged for common shares of ESV Resources on a one-for-one basis. Upon closing of the transaction, ESV Resources Ltd. will change its name to "Denarius Silver Corp.”

On completion of the transaction, ESV Resources's Board of directors and management team will be reconstituted to consist of Jeff Couch as Director, Frederic Leigh as Director, Paul Sparkes as Director, Serafino Iacono as Director and Lombardo Paredes-Arenas as Director. ESV will reconstitute its management and will consists of Frederic Leigh as Chief Executive Officer and Augusto Garcia will be appointed President of ESV Resources's Colombian subsidiary. Gran Colombia Gold Corp. will have two nominees on the reconstituted Board of Directors of ESV Resources following the transactions. It is anticipated that Frederic Leigh will continue to serve as ESV's Chief Executive Officer on an interim basis.

Completion of the transaction is subject to a number of conditions, including but not limited to TSX Venture Exchange acceptance and shareholder approval, if applicable. The transaction is subject to completion of the non-brokered private placement financing. In addition, approval of the shareholders of ESV Resources and Guia Antigua will be required in connection with the transaction, approval of the Registrar, the time period for the exercise of any Dissent Rights shall have expired and Guia Antigua shareholders shall not have exercised such Dissent Rights. As of November 9, 2020, ESV Resources completed the non-brokered private placement of 18.68 million subscription receipts at CAD 0.45 per receipt for gross proceeds of CAD 8.404 million. The proceeds of the concurrent financing will be held in escrow pending the ESV Resources receiving all applicable regulatory approvals and completing the Guia Antigua acquisition. Rosina Jagore, Sam Cole and Jennifer Poirier of Cassels Brock & Blackwell LLP acted as legal advisors to Denarius Silver Corp.

Zancudo Project of Gran Colombia Gold Corp. (TSX:GCM) and Guia Antigua Project completed the acquisition of ESV Resources Ltd. (TSXV:ESV.H) in a reverse merger transaction on February 19, 2021. Shares of the resulting issuer are expected to resume trading on TSX Venture Exchange under the symbol 'DSLV' on March 1, 2021. Michael Davies and Amanda Fullerton will be joining as Chief Financial Officer and Corporate Secretary,respectively. Michelle Borthwick has resigned as Chief Financial Officer and Corporate Secretary of ESV Resources. In addition, Jeffrey Couch and Paul Sparkes will join the Board of Directors, to fill the casual vacancies left upon the resignation of Thomas O'Neill and Bernadette D'Silva. As on February 22, 2021, Gran Colombia Gold Corp. acquired 33.7 million share representing 36.2% stake in ESV Resources Ltd. while the ESV shareholders and former shareholders of the Guia Antigua Vendor retained an approximately 34.2% and 29.3% equity interest, respectively, in Denarius, the resulting issuer. ESV Resources Ltd. has been renamed Denarius Silver Corp.