TORONTO, May 30, 2016 /CNW/ - Galane Gold Ltd. ("Galane
Gold" or the "Company") (TSX-V: GG) is pleased to announce the
release of its financial results for the three months ended
March 31, 2016. All amounts are in
United States dollars unless
otherwise indicated.
A copy of the unaudited condensed consolidated interim financial
statements for the three months ended March
31, 2016 prepared in accordance with International Financial
Reporting Standards and the corresponding Management's Discussion
and Analysis will be available under the Company's profile on
www.sedar.com.
First Quarter 2016 Highlights
- Produced 5,828 ounces of gold.
- All-in operating cash cost of $1,079 per ounce (excluding
royalties).(1)
- Positive cash flows from operating activities of $620,532.
- Cash balance of $2,196,831 at the
end of the quarter.
- Net loss of $2,379,494 which
included:
- Unrealised foreign exchange losses of $469,664
- Galaxy restart costs of $453,926
Galane Gold CEO, Nick Brodie
commented: "The first quarter of 2016 outperformed our internal
expectations especially with regards to production and net positive
cash flows. In addition what the results do not reflect is that we
started stoping in the main Tau ore body, at the Mupane mine, three
months ahead of target in April 2016.
As a result we expect to see a marked improvement in quarter two
and are optimistic that we will be able to generate substantial
operating cash-flows from our operations in Botswana.
The management team has two key operational targets for 2016 and
having achieved the first, mining at the main ore body at Tau, is
now focused on the second, the resumption of production at Galaxy.
The process to recommence operations at Galaxy is ongoing and we
have continued to optimize the path forward as we review the
multitude of ore sources available to us. Galaxy is a core
feature of our long-term strategy to operate long-life and low-cost
gold mines that can produce positive returns for investors across
commodity cycles."(2)
Rights Offering
The Company also announces the following additional information
concerning the distribution of common shares pursuant to the rights
offering completed on May 9,
2016:
- pursuant to the Basic Subscription Privilege, 60,568,856 common
shares were distributed of which 21,667,385 common shares were
distributed to persons who were insiders before the distributions
under the rights offering or persons who became insiders as a
result of the distributions under the rights offering, and
38,901,471 common shares were issued to the remaining subscribers
under the Basic Subscription Privilege; and
- pursuant to the Additional Subscription Privilege, 10,745,586
common shares were distributed of which 4,726,003 common shares
were distributed to persons who were insiders before the
distributions under the rights offering or persons who became
insiders as a result of the distributions under the rights
offering, and 6,019,583 common shares were issued to the remaining
subscribers under the Additional Subscription Privilege.
About Galane Gold
Galane Gold is an un-hedged gold
producer and explorer with mining operations and exploration
tenements in Botswana and
South Africa. Galane Gold is a public company and its shares
are quoted on the TSX Venture Exchange and the Botswana Stock
Exchange under the symbol "GG". Galane Gold's management team is comprised of
senior mining professionals with extensive experience in managing
mining and processing operations and large-scale exploration
programmes. Galane Gold is
committed to operating at world-class standards and is focused on
the safety of its employees, respecting the environment, and
contributing to the communities in which it operates.
Note:
(1)
|
Total Operating cash
cost excluding royalties is a non-GAAP measure. Refer to
"Supplemental Information to Management's Discussion and Analysis"
in the Company's Management's Discussion and Analysis for the three
months ended March 31, 2016 for reconciliation to measures reported
in the Company's financial statements.
|
|
|
(2)
|
This is
forward-looking information and is based on a number of
assumptions. See "Cautionary Notes".
|
Cautionary Notes
Certain statements contained in this press release constitute
"forward-looking statements". All statements other than statements
of historical fact contained in this press release, including,
without limitation, those regarding the Company's future financial
position and results of operations, strategy, proposed
acquisitions, plans, objectives, goals and targets, and any
statements preceded by, followed by or that include the words
"believe", "expect", "aim", "intend", "plan", "continue", "will",
"may", "would", "anticipate", "estimate", "forecast", "predict",
"project", "seek", "should" or similar expressions or the negative
thereof, are forward-looking statements. These statements are not
historical facts but instead represent only the Company's
expectations, estimates and projections regarding future events.
These statements are not guarantees of future performance and
involve assumptions, risks and uncertainties that are difficult to
predict. Therefore, actual results may differ materially from what
is expressed, implied or forecasted in such forward-looking
statements.
Additional factors that could cause actual results, performance
or achievements to differ materially include, but are not limited
to: the Company's dependence on two mineral projects; gold price
volatility; risks associated with the conduct of the Company's
mining activities in Botswana and
South Africa; regulatory, consent
or permitting delays; risks relating to the Company's exploration,
development and mining activities being situated in Botswana and South
Africa; risks relating to reliance on the Company's
management team and outside contractors; risks regarding mineral
resources and reserves; the Company's inability to obtain insurance
to cover all risks, on a commercially reasonable basis or at all;
currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project
financing and equity issuances; risks arising from the Company's
fair value estimates with respect to the carrying amount of mineral
interests; mining tax regimes; risks arising from holding
derivative instruments; the Company's need to replace reserves
depleted by production; risks and unknowns inherent in all mining
projects, including the inaccuracy of reserves and resources,
metallurgical recoveries and capital and operating costs of such
projects; contests over title to properties, particularly title to
undeveloped properties; laws and regulations governing the
environment, health and safety; operating or technical difficulties
in connection with mining or development activities; lack of
infrastructure; employee relations, labour unrest or
unavailability; health risks in Africa; the Company's interactions with
surrounding communities and artisanal miners; the Company's ability
to successfully integrate acquired assets; risks related to
restarting production; the speculative nature of exploration and
development, including the risks of diminishing quantities or
grades of reserves; development of the Company's exploration
properties into commercially viable mines; stock market volatility;
conflicts of interest among certain directors and officers; lack of
liquidity for shareholders of the Company; risks related to the
market perception of junior gold companies; and litigation
risk.Management provides forward-looking statements because it
believes they provide useful information to investors when
considering their investment objectives and cautions investors not
to place undue reliance on forward-looking information.
Consequently, all of the forward-looking statements made in this
press release are qualified by these cautionary statements and
other cautionary statements or factors contained herein, and there
can be no assurance that the actual results or developments will be
realized or, even if substantially realized, that they will have
the expected consequences to, or effects on, the Company. These
forward-looking statements are made as of the date of this press
release and the Company assumes no obligation to update or revise
them to reflect subsequent information, events or circumstances or
otherwise, except as required by law.
Information of a technical and scientific nature that forms
the basis of the disclosure in the press release has been approved
by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist
for Galane Gold, and a "qualified
person" as defined by National Instrument 43-101.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Galane Gold Ltd.