Galane GOLD Ltd. Announces the Lapsing of the Letter of Intent FOR the Proposed Acquisition of Vantage Goldfields Limited
For immediate release
GALANE GOLD LTD. ANNOUNCES THE LAPSING OF THE LETTER OF INTENT FOR
THE PROPOSED ACQUISITION OF VANTAGE GOLDFIELDS LIMITED
TORONTO, ONTARIO – August 9, 2017: Galane Gold Ltd. (“Galane” or the “Company”)
(TSX-V: GG) announce d on May 23, 2017 that it has entered into a letter of intent (the
“LOI”) for the acquisition of all of the outstanding shares of Vantage Goldfields Limited
(“Vantage”), a gold mining company with operations in the Mpumalanga Province of
South Africa (the “Acquisition”). Galane and Vantage have been unable to conclude on
the execution of a binding acquisition agreement (the “ Acquisition Agreement”) and
therefore the LOI has been terminated.
Vantage has been unable to meet the conditions set out in the LOI, and therefore is not
in a position to sign the Acquisition Agreement. Galane has provided five extensions to
the original LOI, and will not extend further.
CEO Nick Brodie stated “Galane has decided not to further extend the LOI, which is a
disappointing outcome but at the current moment the only option. The situation at
Vantage is complex with the company’s primary subsidiaries in Business Rescue and its
key operating mine having suffered a tragic accident in 2016. Working with the Vantage
management team with substantial support from the Business Rescue Practitioner we
presented a solution to first restart the Lily mine and subsequently the Barbrook mine,
pay off th e creditors over a reasonable time period and provided an Acquisition
Agreement that was in line with the LOI. Vantage has been unable to meet the
conditions in the LOI for a variety of reasons, despite their best efforts and we therefore
have no option but to terminate our discussions.”
About Galane
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 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 emplo yees, 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 Company’s future
financial position and results of operations, strategy, proposed acquisitions, plans,
objectives, goals and targets, and any statements preceded by, follo wed 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.
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.
Contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905 089878
www.GalaneGold.com