TORONTO, March 30, 2016 /CNW/ - Galane Gold Ltd.
("Galane" or the "Company") (TSX-V: GG) is pleased to
announce that it has filed a rights offering notice (the
"Notice") and rights offer circular (the "Circular")
on www.sedar.com for an offering (the "Rights Offering") to
the eligible holders of its common shares (the "Common
Shares") of record at close of business on April 8, 2016 (the "Record Date"). The
rights issued under the Rights Offering (the "Rights") will
expire on May 6, 2016 (the "Expiry
Date"). The Rights Offering will be conducted in all of the
provinces and territories of Canada.
Each eligible registered shareholder of Common Shares on the
Record Date will receive one (1) Right for each Common Share held
by such shareholder. One (1) Right plus the sum of $0.01 will entitle the Rights holder to subscribe
for one Common Share. The Rights issued under the Rights Offering
will be evidenced by transferable rights certificates (each, a
"Rights Certificate"), and will expire at 4:30 p.m. (Toronto time) on the Expiry Date, after which
time unexercised Rights will be void and of no value. The Rights
shall not be listed for trading.
Eligible shareholders are entitled to subscribe for additional
Common Shares, subject to certain limitations set out in the
Circular. It is anticipated that the Notice and accompanying Rights
Certificate will be mailed to each of the eligible shareholders of
the Company on or about April 15,
2016. Eligible registered shareholders wishing to exercise
their Rights must forward the completed Rights Certificates,
together with the applicable funds to Equity Financial Trust
Company, the rights agent of the Company, on or before the Expiry
Date. Shareholders who own their Common Shares through an
intermediary, such as a bank, trust company, securities dealer or
broker, will receive materials and instructions from their
intermediary.
A fully subscribed Rights Offering is expected to generate gross
proceeds of approximately $713,000.
The net proceeds from the Rights Offering are expected to be used
to recommence operations at the mining facilities of its subsidiary
Galaxy Gold Mining Limited ("Galaxy"). While the Company
intends to spend the available funds as described, there may be
circumstances where, for sound business reasons, a reallocation of
the available funds may be necessary. In any event, the available
funds will be used by the Company in furtherance of its
business.
Chief Executive Officer Nick
Brodie stated, "Galane has undertaken an extensive review on
its fundraising to recommence operations at its newly acquired
Galaxy operation. From the review, we decided that we would
like to give existing shareholders the opportunity to invest in the
future of the Company. To that end, we believe that the best
and most equitable way to achieve this is to undertake a rights
offering. We hope that all eligible shareholders will participate
as the net proceeds of a fully subscribed rights offering is
expected to provide sufficient funds to start the rehabilitation
and commence a tailings operation at Galaxy. At current gold prices
we expect this will produce positive operating cash flows in the
short term. We will also continue to finalise the plan to fully
rehabilitate the existing plant and to restart underground mining
at Galaxy in the near future."
About Galane Gold Ltd.
Galane is an un-hedged gold producer and explorer with mining
operations and exploration tenements in Botswana and South
Africa. Galane is a public company and its shares are quoted
on the TSX Venture Exchange and the Botswana Stock Exchange under
the symbol GG. Galane's management team is comprised of
senior mining professionals with extensive experience in managing
mining and processing operations and large-scale exploration
programmes. Galane 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.
Galaxy Description
Galaxy's mining assets are located on the Barberton Greenstone
Belt ("BGB"), approximately 10 km to the west of the town of
Barberton in the Mpumalanga Province of South Africa and include several historical
mining operations on the BGB as well as tailings storage facilities
comprised of previously mined and processed material. The
mining of gold in South Africa
began in Barberton, where the first traces of alluvial gold were
discovered in 1874. Historic production at Galaxy commenced
in the 1880s. To date, the mining assets have produced over
one million ounces of gold. The information regarding the quantity
of gold produced historically is based on available public sources,
has not been independently verified by the Company and should not
be relied upon as a predictor of future results.
Galaxy's existing processing plant is in need of refurbishment
and consists of a crushing, milling, flotation, thickening, Biox,
carbon in leach, elution and tailings disposal designed to treat
16,000 tonnes of ore per month. This facility can be expanded
through refurbishment and the introduction of larger mills and
flotation equipment.
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 completion, timing and quantum of proceeds of the Rights
Offering, the Company's future financial position and results of
operations, strategy, 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 are set out under the heading
"Risks and Uncertainties" in Galane's annual management's
discussion and analysis for the year ended December 31, 2014, a copy of which is available
on the Company's SEDAR profile at www.sedar.com. 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 or referenced 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.