Galane GOLD Ltd. Reports First Draw Down ON the Barak Facility and Update ON the Plan to Recommence Production IN April 2019 at Galaxy
For immediate release
GALANE GOLD LTD. REPORTS FIRST DRAW DOWN ON THE BARAK FACILITY
AND UPDATE ON THE PLAN TO RECOMMENCE PRODUCTION IN APRIL 2019 AT
GALAXY
TORONTO, ONTARIO – February 11, 2019: Galane Gold Ltd. (“Galane Gold” or the
“Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce that it has received the
funds from its first draw down request with regards to the secured loan facility with Barak
Fund SPC Limited (“Barak Facility”).
The funds from the Barak Facility will be used to increase the processing plant capacity to
30,000 tonnes per month.(1) It will also be used for the development and first fit work
required to recommence underground operations. The Company expects to produce first
concentrate in April 2019 as previously announced.
Galane Gold CEO, Nick Brodie commented: “The drawing of the funds from Barak is in line
with our internal forecast and ensures that the Galaxy project remains on track.
We are still targeting at Galaxy s teady state annual production to be on average 25,000
ounces of gold at cash cost per ounce of less than US $800.(2)(3) This represents only the
first step of our resurrection of the Galaxy mine and we will shortly commence a study
with the aim being to double production and lower the all -in cost as a result of increased
economies of scale.”
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 under the symbol “GG” and on 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.
Notes:
(1) The Company advises that it is not basing its decision to expand the throughput capacity of the Galaxy
mine’s processing plant to 30,000 tpm on a feasibility study of mineral reserves demonstrating economic
and technical viability of production at such levels, and as a result there is increased uncertainty and there
are multiple technical and economic risks of failure which are associated with producing at such plant ’s
throughput capacity. These risks, among others, include areas that are analyzed in more detail in a
feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy
and a number of specia lized studies in areas such as mining and recovery methods, market analysis, and
environmental and community impacts.
(2) Based on a technical report entitled “A Technical Report on the Galaxy Gold Mine, Mpumalanga Province,
South Africa” which was issued January 4, 2016 with an effective date of September 1, 2015 (the “Galaxy
Technical Report”), and was prepared by Minxcon (Pty) Ltd and approved by Daniel van Heerden, B Eng
(Min.), MCom (Bus. Admin.), Pr. Eng., FSAIMM, AMMSA, a Qualified Person as defined by N ational
Instrument 43-101. The Galaxy Technical Report satisfies the requirements to be a pre-feasibility study.
(3) Operating cash cost is a non-IFRS measure. Refer to “Supplemental Information to Management’s Discussion
and Analysis” in the Company’s Management’s Discussion and Analysis for the three and nine months ended
September 30, 2018 for reconciliation to measures reported in the Company’s financial statements.
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”, “projec t”, “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 s tatements 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 Co mpany’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 arisi ng 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 operatin g 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 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 wi ll
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.
Information of a technical and scientific nature that forms the basis of the disclosure in
the press release has been approved by Kevin Crossling Pr. Sci. Nat., MAusIMM., SACNASP
and Business Development Manager 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 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