- Galane Gold (TSXV:GG) will shut operations at the Galaxy project in South Africa
- South African Government have ordered all mines to move into care and maintenance, due to the COVID-19 outbreak
- A provisional reopen date has been set for April 16
- The company’s operations at the Mupane mine in Botswana may also close
- Galane Gold (GG) is down 20 per cent, with shares trading for C$0.08 and a market cap of $18.9 million
Galane Gold Ltd (TSXV:GG) has announced it will be closing its South African operations this week, in line with a South African Government directive.
The South African Government has ordered all mines in the country to move into care and maintenance mode, until at least April 16 to combat the spread of the COVID-19 pandemic.
The company has assured the market that no cases of COVID-19 have been reported at either its South African Galaxy project or it’s Mupane operation in Botswana.
The future of the Botswana operation is currently unclear.
The company has stated the Mupane operation received most of its critical supplied from South Africa.
Efforts were taken over the last month to boost supplies at the site, in anticipation of shutdowns being brought into effect.
As such the company believes it can sustain production until the end of April without needing to resupply, but if the shutdown in South Africa extends it may well have to close operations in Botswana as well.
Furthermore, the company’s off-taker in Botswana has notified the company it will no longer ship gold dore during the shutdown period.
The company is currently searching for alternatives for both these issues, searching for a new source of critical supplied in Africa and a new transportation system for its gold dore.
Nick Brodie, CEO of Galane Gold, commented on the shutdown today.
“During this difficult period, our objective is to ensure we will be a stronger company after the current pan ddmic subsides, by acting in the best long-term interest of all our stakeholders,” he said.
Galane Gold (GG) is down 20 per cent, with shares trading for C$0.08 at 10:33 am EST.