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Galane Gold Ltd. Closes C$2.7MM Private Placement and Satisfies Last Condition Precedent to Loan Agreement

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Galane Gold Ltd. Closes C$2.7MM Private Placement and Satisfies Last Condition Precedent to Loan Agreement

 

 

 

 

 

Galane Gold Ltd. (TSX-V: GG) (OTCQB:GGGOF) is pleased to announce that the Company has closed its previously announced non-brokered private placement of 54,000,000 units at a price of C$0.05 per Unit for aggregate gross proceeds of C$2,700,000. Each Unit was comprised of one common share of the Company and one common share purchase warrant, with each Warrant entitling the holder thereof to acquire one Common Share at an exercise price of C$0.05 until October 1, 2020.  The expiry date of the Warrants can be accelerated by the Company to the date that is 10 business days after the date where the closing price of the Common Shares on the TSX Venture Exchange is higher than C$0.20 for 10 consecutive trading days, provided such trading days occur four months and one day after the issuance of the Warrants.

 

 

The closing of the Private Placement constituted the satisfaction of the last condition precedent to the effectiveness of the loan agreement for the Company’s previously announced US$5,000,000 secured loan facility with Barak Fund SPC Limited.

 

 

The proceeds of the Facility and of the Private Placement will be used towards the restart of the Company’s Galaxy mine.

 

 

Galane Gold CEO, Nick Brodie commented: “The Galaxy project represents a key change in the future of Galane Gold and the opportunity to bring it into production is unlocked by the Facility and the closing of the Private Placement. We are now in the position to start the next phase, which includes a refurbishment and commissioning of the upgraded processing plant and completing the development work required to restart underground mining. The Company still hopes to have first production from Galaxy in the first quarter of 2019.” (1)

 

 

Pursuant to applicable securities laws, the Common Shares and Warrants comprising the Units, and the Common Shares underlying the Warrants, are subject to a hold period until four months and one day after closing. The Private Placement remains subject to the final approval of the TSX Venture Exchange.

 

 

As previously announced, certain directors and officers of the Company purchased 10,563,000 Units for aggregate gross proceeds of C$528,150. Such issuances of Units were considered related party transactions within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The Company relied upon exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(b) of MI 61-101.

Note:
(1)        This is forward-looking information and is based on a number of assumptions. See “Cautionary Notes”.

 

 

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 TSXV under the symbol “GG” and on 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.

 

Posted October 2, 2018

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