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Galane Gold Announces the Execution of a New Gold Concentrate Offtake Agreement for its Galaxy Operations and the Establishment of an Unsecured US$3 Million Revolving Finance Facility
TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the Company”) (TSX-V: GG; OTCQB: GGGOF) today announces that it has signed a new g
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the Company”) (TSX-V: GG; OTCQB: GGGOF) today announces that it has signed a new gold concentrate offtake agreement dated August 3, 2022 (the “Offtake Agreement”) for its Galaxy project with Ocean Partners UK Limited (“Ocean Partners”). In addition, Ocean Partners has provided the Company with an unsecured US$3 million revolving finance facility (the “Facility”) to help it advance the Galaxy project. “We are excited to start a new partnership with Ocean Partners, who brings a wealth of experience in the industry and will assist us in reaching our objective to ramp up production at Galaxy. The new Offtake Agreement provides a higher payable percentage for the contained gold in the concentrate, which will result in increased positive cash flows for Galaxy. Ocean Partners is also providing the Facility which will be instrumental in helping us finance our expansion plans for Galaxy, and in particular the requirement to expand the mining fleet. These are two very positive steps for Galane Gold and its Galaxy operations and reflects our commitment to create a low-cost, long-life operation to create long term value for all of our stakeholders” said Nick Brodie, Chief Executive Officer. Pursuant to the terms of the Offtake Agreement, the Company will sell a total of 125,000 wet metric tons (“wmt”) of gold concentrate to Ocean Partners. The price for each shipment of gold concentrate will be calculated with reference to the daily US$ London Bullion Market Association morning and afternoon quotations for gold as published in the London “Metal Bulletin” (or such other mutually agreed information source which may replace it), averaged over a quotational period but subject to adjustment in accordance with the terms of the Offtake Agreement. Interest and principal for the Facility will be repaid against deliveries of gold concentrate or cash by the Company to Ocean Partners under the Offtake Agreement. The Company can elect to repay the full principal amount outstanding under the Facility and any accrued interest without any penalty with two weeks of advanced notice. Once a drawdown under the Facility is repaid, such amount can subsequently be redrawn. About Galane Gold Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration te...