TORONTO, Sept. 13, 2016 /CNW/ - Galane Gold Ltd.
("Galane Gold" or the "Company") (TSX-V: GG) is pleased to announce
that it has closed its previously announced mandatory offer (the
"Mandatory Offer") for the acquisition of the outstanding
ordinary shares (the "Galaxy Shares") of Galaxy Gold Mining
Limited ("Galaxy") held by its minority shareholders.
As a result of the completion of the Mandatory Offer, the
Company now owns approximately 98.6% of the outstanding Galaxy
Shares. Pursuant to the terms of the Mandatory Offer,
Galane Gold has agreed to pay an
aggregate purchase price of approximately Cdn$235,000 to holders of Galaxy Shares who
elected to receive cash consideration and to issue 2,340,094 common
shares and 520,016 common share purchase warrants, with each
warrant being exercisable at a price of Cdn$0.175 per common share until September 12, 2018, to those holders of Galaxy
Shares that elected to subscribe for securities of Galane Gold in lieu of receiving cash
consideration.
As the Mandatory Offer was accepted by holders of more than 90%
of the Galaxy Shares not owned by Galane
Gold, Galaxy intends to exercise, to the fullest extent
legally possible, its rights under the Companies Act
(South Africa) to compulsorily
acquire all of the Galaxy Shares that remain outstanding.
Galane Gold CEO, Nick Brodie
commented: "This represents another milestone completed in bringing
the Galaxy mine back into full production. The capital project to
recommence production commenced in July
2016 and we are on target to start producing gold in the
fourth quarter of 2016 as previously advised."
Appointment of Chief Financial Officer
The Company is also pleased to announce that it has appointed
Mr. Gavin Vandervegt as Chief
Financial Officer, effective October 16,
2016, in replacement of interim Chief Financial Officer
Bradshaw Zinyemba.
Mr. Vandervegt has had extensive experience in Africa and held several senior finance
positions in mining including Group Financial Controller at
Nautilus Minerals, Finance Director at Katanga Mining and
Commercial Controller at Xstrata Coal.
Galane Gold CEO, Nick Brodie
commented: "Given Gavin's extensive relevant experience I am very
happy to have secured his services for Galane Gold where I believe he will be a
positive addition to our already strong management team."
Investor Relations Engagement
The Company also announces the engagement of Soar Financial
Partners ("Soar Financial") as an investor relations advisor.
Soar Financial is a communication services company based in
Germany which will assist the
Company with its corporate communications and information
dissemination services.
Soar Financial has agreed to provide services to the Company for
an initial six month period which commenced on May 1, 2016 for a fee of €3,500 per month plus
applicable taxes. In addition, the Company confirms the prior
grant to Soar Financial of options to purchase up to 1,000,000
common shares, exercisable at a price of $0.05 per share for a period of five years.
Prior to the grant of the above-noted options, Soar Financial
had no direct or indirect interest in the Company or its
securities, or any right or intent to acquire such an interest.
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.
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.
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.