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Galane Gold Announces Earn-In Option Agreement for Botswana Prospecting Sites
TORONTO, March 19, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V:GG) is pleased to announce that it has entered into an earn
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, March 19, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V:GG) is pleased to announce that it has entered into an earn-in option agreement (the “Earn-in Agreement”) with B2Gold Corp. (“B2Gold”). Under the Earn-in Agreement, B2Gold has the option to indirectly acquire, in tranches, up to 70% of the shares of a newly incorporated subsidiary (“Newco”) of Galane Gold which has applied for two gold prospecting licences over an aggregate of approximately 520 km2 located around the Company’s Mupane property, excluding its current operations and mining licences, in Botswana. Galane Gold CEO, Nick Brodie commented: “This represents a great opportunity for Galane and B2Gold to join together to target exploration in the Tati Greenstone Belt. The Tati Greenstone Belt is highly prospective and it is hoped with our large historic exploration database, which has identified numerous targets, and B2Gold’s exploration expertise that we will identify a significant resource.” The option is exercisable in tranches upon meeting certain exploration project related expenditure thresholds as follows: (i) B2Gold is to contribute US$500,000 within one year of the Conditions Satisfaction Date (as described below); (ii) B2Gold is to receive a 51% indirect interest in Newco upon contributing an additional US$2,000,000 in exploration project related expenses within three years of the Conditions Satisfaction Date; and (iii) B2Gold is to receive an additional 19% indirect interest in Newco upon contributing an additional US$1,500,000 in exploration project related expenses within four years of the Conditions Satisfaction Date. If B2Gold has not completed the last tranche of expenditures in the stipulated timeframe, B2Gold must transfer its 51% indirect interest in Newco to Galane Gold for no additional consideration. It is expected that the Earn-in Agreement will be replaced by a definitive shareholders agreement governing the parties’ interests in Newco. The Conditions Satisfaction Date will occur upon the satisfaction or waiver of various conditions precedent in the Earn-in Agreement, including completion of due diligence by B2Gold and the issuance of the prospecting licenses to Newco. After the Conditions Satisfaction Date, B2Gold will carry out exploration on the properties with guidance received from a jointly for...