TORONTO, Aug. 18, 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 and six months
ended June 30, 2016. All amounts are
in United States dollars unless
otherwise indicated.
A copy of the unaudited condensed consolidated interim financial
statements for the three and six months ended June 30, 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.
Second Quarter 2016 Highlights
- Produced 7,855 ounces of gold.
- All-in operating cash cost of $849 per ounce (excluding
royalties).(1)
- Positive operating cash flow, before working capital movements,
of $1,978,754.
- Cash balance of $2,430,555 at the
end of the quarter.
- Net profit of $99,173, which
included Galaxy restart costs of $423,769.
Galane Gold CEO, Nick Brodie
commented: "The second quarter of 2016 saw the Company return to
profit as production increased with the start of mining in the main
ore body at Tau. We expect this trend to continue and
production to increase in 2017 as we complete the development of
the main ore body.
In addition the Galaxy rehabilitation project commenced on
July 1, 2016 with an estimated
capital cost of $2 million. The
increase in production at Mupane means we are currently able to
fund the project from our own internal cash flows and add another
potential 18,000 ounces of gold per annum to our output. Galaxy is
a core feature of our long-term strategy with a desk top study
commenced to increase production to 60,000 ounces in the long
term."(2)
Stock Options
The Company also announces the grant of stock options to certain
officers and directors of the Company. Options to purchase up
to 8,200,000 common shares were granted with a five year term and
an exercise price equal to the greater of Cdn.$0.115 per share and the closing price of the
common shares on the TSX Venture Exchange on August 18, 2016. Such options shall vest
according to the following schedule: 10% vest on the date of grant;
10% vest on the first anniversary of the date of grant; 15% vest on
the second anniversary of the date of grant; and 32.5% vest on each
of the fourth and fifth anniversary of the date of grant.
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.
Notes:
(1)
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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 June 30, 2016 for reconciliation to measures reported
in the Company's financial statements.
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|
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(2)
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This is
forward-looking information and is based on a number of
assumptions. See "Cautionary Notes".
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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.