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Galane Gold Ltd. Announces US$5,000,000 Secured Loan Facility to Fund Completion of Galaxy Re-Start
TORONTO, March 05, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V:GG) is pleased to announce that it has entered into a loan
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, March 05, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V:GG) is pleased to announce that it has entered into a loan agreement with Barak Fund SPC Limited with respect to a US$5,000,000 secured loan facility (the “Facility”). The Company has agreed to use the proceeds of the Facility for the refurbishment and expansion of processing facilities and restarting underground mining operations at the Galaxy Gold Mine in Barberton, South Africa owned by Galane Gold’s subsidiary, Galaxy Gold Reefs (Pty) Ltd. Drawdowns on the Facility remain subject to various conditions precedent, which the Company expects to complete by July 2018. Galane Gold CEO, Nick Brodie commented: “We are very pleased to enter into this agreement with Barak Fund, an organisation with intimate knowledge of both the mining sector and operating in South Africa. We anticipate our first production at Galaxy in the first quarter of 2019(1) and annual production at Galaxy to be over 25,000 ounces of gold at a cash cost per ounce of less than US$800(2)(3). We then plan to complete a study on a second expansion phase with the objective of doubling the capacity at the Galaxy processing plant to 60,000 tonnes per month and decreasing the cash cost per ounce as a result of increased economies of scale(1). Galaxy has been associated with mining activity dating back to the late 1800's, has historic production of over 1.2 million ounces of gold, and a current measured and indicated mineral resource and inferred mineral resource of over 1.4 million ounces of gold(2)(4)(5). As a result, we expect Galaxy to provide a strong base for Galane and the recommencement of operations a major step forward in our corporate goal to reshape the Company into a long-life and low-cost operation that can produce positive returns for investors across commodity cycles.” Notes: (1) This is forward-looking information and is based on a number of assumptions. See \"Cautionary Notes\".(2) Based on a technical report entitled “A Technical Report on the Galaxy Gold Mine, Mpumalanga Province, South Africa” which was issued January 4, 2016 with an effective date of September 1, 2015 (the “Galaxy Technical Report”), and was prepared by Minxcon (Pty) Ltd and approved by Daniel...