TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) — Galane Gold Ltd. (“Galane Gold” or the Company”) GGGGGOF today announces that it has signed a new gold concentrate offtake agreement dated August 3, 2022 (the “Offtake Agreement”) for its Galaxy project with Ocean Partners UK Limited (“Ocean Partners”). In addition, Ocean Partners has provided the Company with an unsecured US$3 million revolving finance facility (the “Facility”) to help it advance the Galaxy project.
“We are excited to start a new partnership with Ocean Partners, who brings a wealth of experience in the industry and will assist us in reaching our objective to ramp up production at Galaxy. The new Offtake Agreement provides a higher payable percentage for the contained gold in the concentrate, which will result in increased positive cash flows for Galaxy.
Ocean Partners is also providing the Facility which will be instrumental in helping us finance our expansion plans for Galaxy, and in particular the requirement to expand the mining fleet.
These are two very positive steps for Galane Gold and its Galaxy operations and reflects our commitment to create a low-cost, long-life operation to create long term value for all of our stakeholders” said Nick Brodie, Chief Executive Officer.
Pursuant to the terms of the Offtake Agreement, the Company will sell a total of 125,000 wet metric tons (“wmt”) of gold concentrate to Ocean Partners. The price for each shipment of gold concentrate will be calculated with reference to the daily US$ London Bullion Market Association morning and afternoon quotations for gold as published in the London “Metal Bulletin” (or such other mutually agreed information source which may replace it), averaged over a quotational period but subject to adjustment in accordance with the terms of the Offtake Agreement.
Interest and principal for the Facility will be repaid against deliveries of gold concentrate or cash by the Company to Ocean Partners under the Offtake Agreement. The Company can elect to repay the full principal amount outstanding under the Facility and any accrued interest without any penalty with two weeks of advanced notice. Once a drawdown under the Facility is repaid, such amount can subsequently be redrawn.
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange (“TSXV”) under the symbol “GG” and the OTCQB under the symbol “GGGOF”. 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.
About Ocean Partners
Ocean Partners specializes in the trading of precious metal concentrates, copper, zinc and lead, as well as related by-products and secondary materials. Ocean Partners also provides tolling and toll blending solutions to complex concentrates on a large scale. The Ocean Partners team has spent over 25 years providing successful trading services to miners, smelters, and refiners, and has a strong global network of relationships and contacts in the base and precious metal mining and smelting sector.
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 impact of the terms of the Offtake Agreement to the Galaxy project and the Company, ramp up of production at the Galaxy project, increased positive cash flows for the Company, the impact of the Facility on the Company and its expansion plans, creation of long term value for stakeholders, 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 South Africa and New Mexico; regulatory, consent or permitting delays; risks relating to the Company’s exploration, development and mining activities being situated in South Africa and New Mexico; 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; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; 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 TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
CEO, Galane Gold Ltd.
+ 44 7905 089878