- Galane Gold (GG) has closed a C$9.68 million private placement and signed a definitive agreement to acquire the Summit Mine in New Mexico
- The company will acquire the mine from Pyramid Peak Mining, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman
- Galane also closed a private placement of 44,028,700 subscription receipts at C$0.22 per receipt for aggregate proceeds of C$9,686,314
- The net proceeds will fund the initial cash consideration of US$6 million payable at the closing of the Summit Mine acquisition
- Galane Gold is an unhedged gold producer and explorer with mining operations in Botswana and South Africa
- Galane Gold (GG) is up by 2.27 per cent and is currently trading at $0.225 per share
Galane Gold (GG) has closed a C$9.68 million private placement and signed a definitive agreement to acquire the Summit Mine in New Mexico.
The company will acquire the Summit Mine and the infrastructure constituting the Banner Mill from Pyramid Peak Mining, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman.
Nick Brodie, CEO of Galane Gold commented,
“The Galane Gold management team is excited with the opportunity of restoring another mining operation to economic production. We have successfully done this twice already at our Mupane and Galaxy properties.
The acquisition of the Summit Mine is another step in our corporate goal to reshape the company into a long-life and low-cost operation that can produce positive returns for investors across commodity cycles.
This operation represents a perfect example of this, representing an opportunity to increase Galane Gold’s production, lower its operating costs and reduce its country risk.”
The acquisition is expected to close on May 16, 2021.
Galane has also closed its previously announced private placement of 44,028,700 subscription receipts at C$0.22 per receipt for aggregate proceeds of C$9,686,314.
Each subscription receipt entitles the holder to receive one Galane common share and one common share purchase warrant.
Each warrant entitles the holder to purchase one Galane common share for C$0.30 for three years following the closing of the acquisition.
The lead order came in from Palisades Goldcorp, a resource-focused merchant bank with over C$400 million invested in the sector. With junior resource equities valued at generational lows, Palisades believes the sector is on the cusp of a major bull market move.
The net proceeds will fund the initial cash consideration of US$6 million payable at the closing of the Summit Mine acquisition.
Canaccord Genuity acted as lead agent in connection with the offering on behalf of a syndicate of agents including Research Capital Corporation.
Galane Gold is an unhedged gold producer and explorer with mining operations in Botswana and South Africa.
Galane Gold (GG) is up by 2.27 per cent and is currently trading at $0.225 per share as of 10:59 am ET.