Galane GOLD Ltd. Releases Financial and Operating Results FOR Second Quarter 2017
For immediate release
GALANE GOLD LTD. RELEASES FINANCIAL
AND OPERATING RESULTS FOR SECOND QUARTER 2017
TORONTO, ONTARIO – August 2 9, 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 and six months ended June 30, 2017. All amounts are in United States dollars
unless otherwise indicated.
A copy of th e unaudited condensed consolidated interim financial statements for the
three and six months ended June 30, 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.
Second Quarter 2017 Highlights
Produced 6,709 ounces of gold.
Positive cash flows from operating activities of $1,271,273.
All-in operating cash cost of $943 per ounce (excluding royalties).(1)
Galane Gold CEO, Nick Brodie commented: “ Production in the second quarter of 2017
was negatively impacted by issues encountered on our SAG mill motor. These have now
been resolved and with the Tau underground operation now delivering according to
expectations, we produced 3,782 ounces of gold in the month of July. We are optimistic
that we can maintain this positive trend going forward.
In Q2, we signed an LOI to acquire Vantage Goldfields but despite Galane providing five
extensions to the original deadline, Vantage was unable to meet the conditions in LOI
and we were unable to consummate a transaction. We are disappointed that we were
unable to complete what we believe would have been a highly synergistic an d
constructive combination and are no longer in discussions with Vantage management but
continue to monitor the situation closely.
We have continued to advance our Galaxy project and during the quarter we filed a new
environmental management plan for approval with the department of mines, a key
requirement to recommence operations. With our Mupane property again producing to
our expectations and a more constructive gold price environm ent, we are now focusing
efforts to restart Galaxy to unlock the low cost and long term potential of its
operations.”(2)]
About Galane Gold
Galane Gold is an un -hedged gold producer and explorer with mining operations and
exploration tenements in Botswa na and South Africa . Galane Gold is a public company
and its shares are quoted on the TSX Venture Exchange under the symbol “GG”. Galane
Gold’s management team is comprised of senior mining professionals with extensive
experience in managing mining and pr ocessing 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.
Notes:
(1) Total o perating cash cost excluding royalties is a non -GAAP measure. Refer to
“Supplemental Information to Management’s Discussion and Analysis” in the
Company’s Management’s Discussion and Analysis for the three and six months
ended June 30, 2017 for reconciliation to measures reported in the Company’s
financial statements.
(2) 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, stra tegy, 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 fut ure 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 th e 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 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 c apital 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; operating or technical difficulties in
connection with mining o r 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 acq uired 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 m ines; 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 stat ements 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 rea lized, 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 informa tion, 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 “qualified 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 responsibilit y for the
adequacy or accuracy of this release.
For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905089878
www.GalaneGold.com