TORONTO, May 30, 2016 /CNW/ - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX-V: GG) is pleased to announce the release of its financial results for the three months ended March 31, 2016. All amounts are in United States dollars unless otherwise indicated.
A copy of the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2016 prepared in accordance with International Financial Reporting Standards and the corresponding Management's Discussion and Analysis will be available under the Company's profile on www.sedar.com.
First Quarter 2016 Highlights
- Produced 5,828 ounces of gold.
- All-in operating cash cost of $1,079 per ounce (excluding royalties).(1)
- Positive cash flows from operating activities of $620,532.
- Cash balance of $2,196,831 at the end of the quarter.
- Net loss of $2,379,494 which included:
- Unrealised foreign exchange losses of $469,664
- Galaxy restart costs of $453,926
Galane Gold CEO, Nick Brodie commented: "The first quarter of 2016 outperformed our internal expectations especially with regards to production and net positive cash flows. In addition what the results do not reflect is that we started stoping in the main Tau ore body, at the Mupane mine, three months ahead of target in April 2016. As a result we expect to see a marked improvement in quarter two and are optimistic that we will be able to generate substantial operating cash-flows from our operations in Botswana.
The management team has two key operational targets for 2016 and having achieved the first, mining at the main ore body at Tau, is now focused on the second, the resumption of production at Galaxy. The process to recommence operations at Galaxy is ongoing and we have continued to optimize the path forward as we review the multitude of ore sources available to us. Galaxy is a core feature of our long-term strategy to operate long-life and low-cost gold mines that can produce positive returns for investors across commodity cycles."(2)
The Company also announces the following additional information concerning the distribution of common shares pursuant to the rights offering completed on May 9, 2016:
- pursuant to the Basic Subscription Privilege, 60,568,856 common shares were distributed of which 21,667,385 common shares were distributed to persons who were insiders before the distributions under the rights offering or persons who became insiders as a result of the distributions under the rights offering, and 38,901,471 common shares were issued to the remaining subscribers under the Basic Subscription Privilege; and
- pursuant to the Additional Subscription Privilege, 10,745,586 common shares were distributed of which 4,726,003 common shares were distributed to persons who were insiders before the distributions under the rights offering or persons who became insiders as a result of the distributions under the rights offering, and 6,019,583 common shares were issued to the remaining subscribers under the Additional Subscription Privilege.
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 and the Botswana Stock 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 safety of its employees, respecting the environment, and contributing to the communities in which it operates.
Total Operating cash cost excluding royalties is a non-GAAP measure. Refer to "Supplemental Information to Management's Discussion and Analysis" in the Company's Management's Discussion and Analysis for the three months ended March 31, 2016 for reconciliation to measures reported in the Company's financial statements.
This is forward-looking information and is based on a number of assumptions. See "Cautionary Notes".
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.
Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: the Company's dependence on two mineral projects; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana and South Africa; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in Botswana and South Africa; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks arising from the Company's fair value estimates with respect to the carrying amount of mineral interests; mining tax regimes; risks arising from holding derivative instruments; the Company's need to replace reserves depleted by production; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or development activities; lack of infrastructure; employee relations, labour unrest or unavailability; health risks in Africa; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; risks related to restarting production; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; development of the Company's exploration properties into commercially viable mines; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; risks related to the market perception of junior gold companies; and litigation risk.Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist for Galane Gold, and a "qualified person" as defined by National Instrument 43-101.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Galane Gold Ltd.
For further information: Nick Brodie, CEO, Galane Gold Ltd., + 44 7905089878, [email protected], www.GalaneGold.com