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Galane Gold Announces Execution of Definitive Agreements for the Disposition of Its Mupane Property
TORONTO, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the Company”) (TSX-V: GG; OTCQB: GGGOF) today announces that it has entered into d
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the Company”) (TSX-V: GG; OTCQB: GGGOF) today announces that it has entered into definitive agreements to sell its Mupane gold mine in Botswana (the “Mupane Property”) to Hawks Mining Company Proprietary Limited (the “Purchaser”), a company registered under the laws of Botswana and owned by certain individuals forming part of the Company’s local Botswana management team (the “Transaction”). The board of directors (the “Board”) and management of Galane, as part of its continuing review of the strategy of the Company going forward, has concluded that the Transaction aligns with its long-term goal to be a low-cost producer that can generate positive cash flows through the various cycles of the gold market. With the near completion of the mining of the Tau ore body and the transition to the mining of Golden Eagle, there is a need to restructure operations at the Mupane Property both operationally and financially. Upon review by the Board, it was decided that the Company’s resources will be better utilised by increasing production at Galaxy, and restarting operations at the Summit Mine. Based on the financial statements of the Company as at September 30, 2021, Mupane represented approximately 5% of the net value of the total assets less the total liabilities of the Company. The Transaction is structured as a sale of all of the issued and outstanding shares of the Company’s Botswana subsidiaries which own the Mupane Property and related claims namely Mupane Gold Mining Proprietary Limited, Galane Gold Botswana Proprietary Limited and Southern Cross Exploration and Development Proprietary Limited. The aggregate consideration to be paid by the Purchaser is a nominal amount. In addition, as part of the Transaction, the Company has agreed to cede its rights, title and interest in certain claims it has on loan accounts against the Botswana subsidiaries through cession agreements entered into with the Purchaser. On the closing of the Transaction, the Company will have no further rights or financial obligations relating to Mupane. “Mupane has been the cornerstone of Galane since we commenced operations in 2011, and the decision to sell it to the local management team represents a sensible conclusion for both parties. Mupane needs to transition into a smaller produ...