Galane Gold Ltd. Completes Acquisition of the Northern Lights Exploration Company Pty. Ltd.
April 10, 2012
TORONTO, Apr. 10, 2012 /CNW/ - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is pleased to announce completion of its previously announced acquisition, via its 100% held subsidiary Mupane Gold Mining Pty Ltd. of all of the issued and outstanding shares of The Northern Lights Exploration Company Pty. Ltd. ("NLE").
NLE holds several prospecting licenses in the Tati Greenstone Belt in the Republic of Botswana ("Botswana") which are adjacent to existing licenses held by Galane Gold's Botswana subsidiaries. The combination of NLE's prospecting licenses and the prospecting and mining licenses currently held by Galane Gold's Botswana subsidiaries gives Galane Gold control of what the Company believes are all of the prospective gold areas in the Tati Greenstone Belt. Galane Gold's processing plant is centrally located on the Tati Greenstone Belt in the Mupane mining license area.
To view Figure 1 (Galane Gold Prospecting & Mining Licences), please visit the following link: http://media3.marketwire.com/docs/GALGGF1.pdf.
In consideration for the acquisition, Galane Gold has issued to the NLE shareholders an aggregate of 3,125,000 common shares and promissory notes with an aggregate principal amount of $400,000. In addition, if by July 2018, exploration work within the NLE prospecting license areas confirms a National Instrument 43-101 compliant measured mineral resource containing the minimum ounces of gold set forth in the table below or the number of ounces of contained gold that is mined within such license areas exceeds the ounces of gold set forth in the table below (or any combination thereof without duplication), Galane Gold shall issue to the NLE Shareholders the following additional number of common shares for no additional consideration:
|Number of Additional||Ounces of Measured Resource and/or|
|Common Shares||Mined Contained Gold|
|1,375,000 shares||100,000 ounces|
|1,750,000 shares||250,000 ounces|
|3,125,000 shares||500,000 ounces|
|2,500,000 shares||1,000,000 ounces|
The contingent share issuances noted above are cumulative. For example, if 1,000,000 or more ounces of National Instrument 43-101 compliant measured mineral resource is defined within the NLE license areas and/or is mined within the NLE license areas, then the total share consideration paid to NLE shareholders will be 11,750,000 Galane Gold common shares being comprised of the initial 3,125,000 common shares and an additional 8,750,000 common shares.
"One of the most appealing aspects of these properties is that the previous high calibre exploration work carried out by Gallery Gold Ltd. and Iamgold Corp. was not comprehensively followed up on in the context of the then prevailing much lower gold prices. Exploration ceased for the most part in late 2005, and then completely in early 2007. Only some of the exploration targets were investigated further on the ground and even then, not fully in some cases. Many of the targets received little or no attention." said Galane Gold Chief Geologist Charles Byron.
Galane Gold CEO Philip Condon added "Completing the acquisition of NLE is a major milestone for Galane Gold. Combining the existing Galane Gold exploration tenements with those of NLE means that the Company has a combined area of more than 1200km2and control of what we believe is all prospective ground for gold exploration on the Tati Greenstone Belt. Based on the extensive exploration work performed on the NLE license areas from 1995 to 2007, that includes a completed intensive soil geo-chemistry program across the entire greenstone area, an aeromagnetic survey of the area with geophysical analysis commenced, and substantial drill data from the previously completed exploration, as well as prior historical small scale mine workings, we have a long list of priority exploration targets throughout the area. We are optimistic that we will identify new sources of gold and leverage our existing assets and infrastructure to bring these targets into production.
Galane Gold will be immediately implementing an exploration program that will build on the previously completed extensive work. Mr Byron led the previous program on these properties from 1995 that discovered the Mupane gold deposit and will be leading the continuation of this program for Galane Gold. We will initially focus on the top four priority targets known as "Jim's Luck", "Matopi", "Rainbow" and "Tekwane". The exploration program is fully funded from the cash flow generated from the existing Mupane operation."
About Galane Gold Ltd.
Galane Gold Ltd. is an un-hedged gold producer and explorer with mining operations and exploration tenements in the Republic of Botswana. 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 safety of its employees, respecting the environment, and contributing to the communities in which it operates.
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, plan of operations and comparative advantages; and benefits of this investment. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, regulatory risks, risks inherent in foreign operations, commodity prices, competition, and investments having no history of operations. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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.