Business
Galane Gold Ltd. Closes C$2.7MM Private Placement and Satisfies Last Condition Precedent to Loan Agreement
TORONTO, Oct. 02, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSXV: GG; OTCQB:GGGOF) is pleased to announce that the Company has
About this update from Golconda Gold Ltd
[{"type":"text","content":" TORONTO, Oct. 02, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSXV: GG; OTCQB:GGGOF) is pleased to announce that the Company has closed its previously announced non-brokered private placement (the “Private Placement”) of 54,000,000 units (the “Units”) at a price of C$0.05 per Unit for aggregate gross proceeds of C$2,700,000. Each Unit was comprised of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to acquire one Common Share at an exercise price of C$0.05 until October 1, 2020. The expiry date of the Warrants can be accelerated by the Company to the date that is 10 business days after the date where the closing price of the Common Shares on the TSX Venture Exchange is higher than C$0.20 for 10 consecutive trading days, provided such trading days occur four months and one day after the issuance of the Warrants. The closing of the Private Placement constituted the satisfaction of the last condition precedent to the effectiveness of the loan agreement for the Company’s previously announced US$5,000,000 secured loan facility with Barak Fund SPC Limited (the “Facility”). The proceeds of the Facility and of the Private Placement will be used towards the restart of the Company’s Galaxy mine. Galane Gold CEO, Nick Brodie commented: “The Galaxy project represents a key change in the future of Galane Gold and the opportunity to bring it into production is unlocked by the Facility and the closing of the Private Placement. We are now in the position to start the next phase, which includes a refurbishment and commissioning of the upgraded processing plant and completing the development work required to restart underground mining. The Company still hopes to have first production from Galaxy in the first quarter of 2019.” (1) Pursuant to applicable securities laws, the Common Shares and Warrants comprising the Units, and the Common Shares underlying the Warrants, are subject to a hold period until four months and one day after closing. The Private Placement remains subject to the final approval of the TSX Venture Exchange. As previously announced, certain directors and officers of the Company purchased 10,563,000 Units for aggregate gross proceeds of C$528,150. Such issuances of Units were c...