Galane Gold Ltd. Announces Effective Date of Name Change to Golconda Gold Ltd. and Share Consolidation
Galane Gold Ltd. Announces Effective Date of Name Change to Golconda Gold
Ltd. and Share Consolidation
TORONTO, Oct. 19, 2022 -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to
announce that it has received approval from the TSX Venture Exchange to change the Company’s name to “Golconda Gold
Ltd.” (the “Name Change”) and to consolidate the Company’s outstanding common shares on the basis of one new common
share for every five existing common shares (the “Consolidation”). The Name Change and Consolidation will take effect at the
start of trading on October 21, 2022.
The Company believes the proposed new name, “Golconda Gold Ltd.”, will more accurately represent the Company today and
going forward. The name “Galane Gold Ltd.” is associated with, and was chosen specifically to complement, the Mupane Gold
Mine. With the divestment of Mupane, the Company believes a new name will make it clear to current stakeholders and future
stakeholders that the Company no longer owns Mupane and is concentrating on progressing both Galaxy Gold and the
Summit Mine and Banner Mill.
The Company believes that the share price and the number of shares outstanding following the Consolidation will more
appropriately reflect the Company’s status as a junior gold producer. Based on investor feedback, management believes that
while the higher share count and lower share price was appealing to certain investors, the new proposed capital structure will
be more appealing to prospective institutional shareholders and will aid management in its efforts to expand and diversify the
Company’s shareholder base with the goal of increasing liquidity and establishing a trading price that more accurately reflects
the underlying value and future potential of the Company’s operations.
The Name Change and Consolidation were approved by shareholders on June 23, 2022. For further details on the Name
Change and Consolidation, see the Company’s press release dated May 26, 2022.
As a result of the Consolidation, the 356,366,541 common shares issued and outstanding prior to the Consolidation will be
reduced to approximately 71,273,308 common shares. Each shareholder’s percentage ownership in the Company and
proportionate voting power will remain unchanged after the Consolidation, except for minor changes and adjustments resulting
from the treatment of any fractional common shares. The exercise price of the Company’s outstanding common share
purchase warrants and the number of common shares issuable thereunder have been adjusted in accordance with the
Consolidation.
In connection with the Consolidation, the Company expects to send letters of transmittal to registered holders of its common
shares for use in transmitting their existing share certificates (“Existing Certificates”) to the Company’s registrar and transfer
agent, TSX Trust Company, in exchange for new certificates (“New Certificates”) representing the number of post-Consolidation
common shares to which such shareholder is entitled as a result of the Consolidation. No delivery of a New Certificate to a
shareholder will be made until the shareholder has surrendered its Existing Certificates. Until surrendered, each Existing
Certificate shall be deemed for all purposes to represent the number of post-Consolidation common shares to which the holder
is entitled as a result of the Consolidation.
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 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.
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 effective date of
the Name Change and Consolidation, 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 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 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.
For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905 089878
www.GalaneGold.com