Galane Gold Ltd. Announces Advance of Funds Under Gold Prepayment Agreement With Samsung and Repayment of IAMGOLD
TORONTO, ONTARIO--(Marketwired - Sep 4, 2014) - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is pleased to announce that it has met the conditions precedent set out in the previously announced US$5.0m loan facility and gold prepayment agreement with Samsung C&T U.K. Limited and, as a result, has drawn down the full US$5.0m. For additional details regarding the agreement with Samsung, please refer to the Company's press release dated August 25, 2014.
The Company has used the proceeds of the facility to repay early and in full the outstanding debt and accrued interest owed to IAMGold Corp. of US$2.73m. With the repayment of this debt, all related covenants at the parent company level of Galane Gold including those prohibiting the payment of dividends, share repurchases, and certain other corporate activities have been removed, allowing the Company significant additional flexibility in its pursuit of shareholder value creation. The balance of the proceeds of the facility will be used for general corporate and working capital purposes.
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana. 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.
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.