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Galane Gold Announces Closing of the Acquisition of the Summit Mine in New Mexico and Release of Funds From Subscription Receipt Financing
TORONTO, May 19, 2021 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the closing of its
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, May 19, 2021 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the closing of its previously announced transaction whereby Galane Gold, through a wholly-owned subsidiary, will acquire (the “Acquisition”) the Summit Mine and the infrastructure constituting the Banner Mill in New Mexico (collectively, the “Assets”) from Pyramid Peak Mining, LLC (the “Seller”), a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP. Nick Brodie, CEO of Galane Gold, commented, “The management team is excited to now have an additional opportunity to increase Galane’s production, lower its operating costs and diversify its country risk. Following closing of the Acquisition, Galane’s plan is to first update the 2014 Technical Report (as defined below) which showed an average production of 1 million ounces of silver and 16,000 ounces of gold per annum over the life of mine, an all-in sustaining cost of US$578 per gold equivalent ounce, and a start-up capital cost of US$4.2 million. From there it will then be to target production as quickly as possible.”(1)(2) In addition, in connection with the closing of the Acquisition, the net proceeds of the private placement of subscription receipts of the Company (“Subscription Receipts”) completed on April 8, 2021 (the “Offering”) have been released from escrow and delivered to Galane Gold, in order to fund the initial cash consideration of US$6 million payable at the closing of the Acquisition. In connection with the Offering, the Company issued 44,028,700 Subscription Receipts at a price of C$0.22 per Subscription Receipt (the “Issue Price”) for aggregate proceeds of C$9,686,314, including a lead order from Palisades Goldcorp Ltd. (“Palisades”). Each Subscription Receipt has converted into one common share of the Company (a “Common Share”) and one Common Share purchase warrant of the Company (a “SR Warrant”). Each SR Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.30, for a period of three years following the closing of the Acquisition. Canaccord Genuity Corp. acted as lead agent in connection with the Offering, on behalf of a syndicate of agents, including Research Capital Corporation. For further details on the Acquisition, the Assets, and th...