Galane Gold Ltd. (TSX-V: GG) (OTCQB: GGGOF) announces that it has signed a new gold concentrate offtake agreement dated August 3, 2022 for its Galaxy project with Ocean Partners UK Limited. In addition, Ocean Partners has provided the Company with an unsecured US$3 million revolving finance facility to help it advance the Galaxy project.
“We are excited to start a new partnership with Ocean Partners, who brings a wealth of experience in the industry and will assist us in reaching our objective to ramp up production at Galaxy. The new Offtake Agreement provides a higher payable percentage for the contained gold in the concentrate, which will result in increased positive cash flows for Galaxy.
Ocean Partners is also providing the Facility which will be instrumental in helping us finance our expansion plans for Galaxy, and in particular the requirement to expand the mining fleet.
These are two very positive steps for Galane Gold and its Galaxy operations and reflects our commitment to create a low-cost, long-life operation to create long term value for all of our stakeholders” said Nick Brodie, Chief Executive Officer.
Pursuant to the terms of the Offtake Agreement, the Company will sell a total of 125,000 wet metric tons of gold concentrate to Ocean Partners. The price for each shipment of gold concentrate will be calculated with reference to the daily US$ 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 and the OTCQB. 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.
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We acknowledge the [financial] support of the Government of Canada.