Business
Galane Gold Ltd. settles outstanding claims with former mining contractors of its subsidiary Galaxy Gold Mining Limited
Galane Gold Ltd. settles outstanding claims with former mining contractors of its subsidia...
About this update from Golconda Gold Ltd
[{"type":"text","content":"\n\n\n\nGalane Gold Ltd. settles outstanding claims with former mining contractors of its subsidiary Galaxy Gold Mining Limited\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nGalane Gold Ltd. settles outstanding claims with former mining contractors of its subsidiary Galaxy Gold Mining Limited\nCanada NewsWire\nTORONTO, March 29, 2016\n\n\n\nTORONTO, March 29, 2016 /CNW/ - Galane Gold Ltd. (\"Galane Gold\" or the \"Company\") (TSX-V: GG) is pleased to announce that Galane and its subsidiary, Galaxy Gold Mining Limited (\"Galaxy\") have entered into a full and final settlement agreement with Traxys Europe SA, Mine2Market S. à r.l. and certain others (collectively the \"Traxys parties\") with respect to various outstanding claims arising from the time period when the Traxys parties operated Galaxy's mining operations.  As a result of the settlement, the Traxys parties unconditionally and irrevocably cancelled and waived all claims in relation to the various contract mining, off-take and tailings agreements and indebtedness entered into or owed by Galaxy and/or its subsidiary, Galaxy Gold Reefs Proprietary Limited (\"Galaxy Gold Reefs\"). The Traxys parties have also released their security interests against Galaxy's assets including its plant and mining licences.\n\nIn connection with the settlement, the Traxys parties have agreed to settle its claim for US$4.3 million of indebtedness owing by Galaxy and Galaxy Gold Reefs in exchange for the issuance by Galane Gold of unsecured convertible debentures in the aggregate principal amount of US$3.2 million (the \"Debentures\"). The Debentures mature in November 2019 and bear interest at 4% per annum which accrues until the maturity date. The principal is convertible at the option of the holder into common shares in the capital of Galane Gold (\"Common Shares\") at a price of Cdn$1.00 per share, based on a pre-determined exchange rate of US$1.00:Cdn$1.30. The interest is convertible into Common Shares, based on a pre-determined exchange rate of US$1.00:Cdn$1.30, at a price equivalent to the greater of Cdn$1.00 an...