In August, the company announced it was initiating a quarterly dividend of C1.5c per share.

"We continue to see significant potential upside in the re-rating of our share price. In addition to the recently announced quarterly dividend, the NCIB is an important component of our value creation strategy as the repurchase of shares using our free cash flow provides a permanent favourable impact to our earnings and cash flow per share metrics," said executive chair Serafino Iacono.

The average daily trading volume of Gran Colombia shares for the six months ended August 31 was 614,084 shares. Daily purchases will be limited to 153,521 shares, other than block purchase exceptions.

Under a previous NCIB, Gran Colombia purchased 56,000 shares for cancellation at a volume weighted average trading price of $3.42 per share between June 2019 and June 2020.

Gran Colombia has guided for production of between 218,000 and 226,000 ounces for 2020 from its operations in Segovia in Antioquia, in Colombia.

Shares in Gran Colombia Gold are trading at $5.85, valuing the company at $362 million.