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Galane Gold Ltd. Announces Replacement of Convertible Debenture and an Update on the Barak Loan Facility
TORONTO, July 04, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSXV:GG) today announced that it has entered into an agreement wit
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, July 04, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSXV:GG) today announced that it has entered into an agreement with Traxys Europe SA (“Traxys”) to replace the existing 4% unsecured convertible debenture in the principal amount of US$3,249,433 (the “Debenture”). The Debenture was issued to Traxys on March 29, 2016 and is convertible into common shares in the capital of the Company (“Common Shares”). Under the terms of the new debenture, the conversion price of the principal amount of the Debenture has been reduced from CDN$0.58 to CDN$0.15 per Common Share and the maturity date has been extended from November 20, 2019 to November 20, 2021. The TSX Venture Exchange has conditionally approved the proposed replacement of the Debenture, subject to the satisfaction by the Company of certain conditions. The Company has made material progress towards the disbursal of the US$5,000,000 secured loan facility with Barak Fund SPC Limited previously announced on March 5, 2018. The Company is working through the various conditions precedent and documentation with respect to the facility and anticipates first drawdown on the facility early in the third quarter of 2018. As a result of such progress, the Company and Barak have entered into an addendum to the loan agreement to extend the expected closing date to on or before July 31, 2018. Galane Gold CEO, Nick Brodie commented: “We are very pleased to announce the restructuring of Traxys’ Debenture to match when we are planning for the Galaxy project to be in full production. In addition we are pleased to be nearing completion of the conditions for the draw-down of the debt facility provided by Barak Fund and expect to be able to provide further updates with respect to the re-start of Galaxy in the near future.” 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”. 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 safet...