Galane GOLD Ltd. Releases Financial and Operating Results FOR First Quarter 2017
For immediate release
GALANE GOLD LTD. RELEASES FINANCIAL
AND OPERATING RESULTS FOR FIRST QUARTER 2017
TORONTO, ONTARIO – May 26, 201 7: Galane Gold Ltd. (“Galane Gold” or the
“Company”) (TSX-V: GG) is pleased to announce the release of its financial results for
the three months ended March 31, 2017. All amounts are in United States dollars unless
otherwise indicated.
A copy of the unaudited condensed consolidated interim finan cial statements for the
three months ended March 31, 2017 prepared in accordance with International Financial
Reporting Standards and the corresponding Management’s Discussion and Analysis will
be available under the Company’s profile on www.sedar.com.
First Quarter 2017 Highlights
Sold 5,531 ounces of gold.
Positive cash flows from operating activities of $821,253.
Cash balance of $1,241,089 at the end of the quarter.
Subsequent Events
Announced letter of intent to acquire Vantage Goldfields Limited (“Vantage”), an
Australian gold mining company with two mines and processing plant proximate
to Galane Gold’s Galaxy operation.
Galane Gold CEO, Nick Brodie commented: “The first quarter of 2017 was challenging for
Galane Gold as unseasonably high rainfall at the Mupane property resulted in flooding at
our underground mine and operational issues related to feeding wet ore to our plant .
While we managed to continue production throughout this period, albeit at a reduce d
rate, we did not reach our own internal targets. The second quarter to -date has seen us
move past these challenges and we have resumed a normal rate of production.
The announcement of the potential acquisition of Vantage is a significant opportunity for
Galane. We expect to integrate Galaxy and Vantage with a view to deriving substantial
operational and cost synergies and take a major step forward in our goal to reshape the
Company into a long -life and low -cost operation that can produce positive returns for
investors across commodity cycles.”(1)
Options and deferred share units
The Company also announces that it has authorized the grant of options to the Chief
Financial Officer of the Company. Options to purchase up to 500,000 common shares
were authorized for grant with a five year term and an exercise price equal to the closing
price of the common shares on the TSX Venture Exchange on May 26, 2017. Such
options shall vest according to the following schedule: 10% vest on the award date ;
10% vest on the first anniversary of the award date ; 15% vest on the second
anniversary of the award date ; and 32.5% vest on each of the fourth and fifth
anniversary of the award date.
The Company also announces that it has authorized the grant of deferred share u nits
(“DSUs”) to the Chief Executive Officer of the Company equal to 25% of his salary
(approximately £62,500) and to the Chief Operating Officer of the Company equal to
25% of his salary (approximately $68,000), each determined based on the closing price
of the common shares on the TSX Venture Exchange on May 26, 2017. Such DSUs shall
vest in three equal instalments on the first, second and third anniversaries of the award
date. The DSUs have been awarded based on the achievement of certain key
performance indicators for the 2016 financial year as previously approved by the
Compensation Committee of the Company in May 2016.
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 TSX Venture Exchange and the B otswana Stock
Exchange under the symbol “GG”. Galane Gold’s management team is comprised of
senior mining professionals with extensiv e 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.
Note:
(1) This is forward -looking information and is based on a number of assumptions. See
“Cautionary Notes”.
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, 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 Botswana and South Africa; regulatory, consent or permitting delays; risks
relating to the Company’s exploration, development and mining activities being situated
in Botswana and South Africa; 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 s ufficient
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 p rojects; contests over
title to properties, particularly title to undeveloped properties; laws and regulations
governing the environment, health and safety; operating or technical difficulties in
connection with mining or development activities; lack of in frastructure; 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 resta rting 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; confl icts 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 believe s 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 ar e
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 expec ted
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.
Information of a technical and scientific nature that forms the basis of the disclosure in
the press release has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA
and Chief Geologist for Galane Gold, and a “q ualified person” as defined by National
Instrument 43-101.
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 7905089878
www.GalaneGold.com