Galane Gold Ltd. Announces Effective Date of Name Change to Golconda Gold Ltd. and Share Consolidation
October 19 2022 - 8:00AM
Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG;
OTCQB: GGGOF) is pleased to announce that it has received approval
from the TSX Venture Exchange to change the Company’s name to
“Golconda Gold Ltd.” (the “Name Change”) and to consolidate the
Company’s outstanding common shares on the basis of one new common
share for every five existing common shares (the “Consolidation”).
The Name Change and Consolidation will take effect at the start of
trading on October 21, 2022.
The Company believes the proposed new name,
“Golconda Gold Ltd.”, will more accurately represent the Company
today and going forward. The name “Galane Gold Ltd.” is associated
with, and was chosen specifically to complement, the Mupane Gold
Mine. With the divestment of Mupane, the Company believes a new
name will make it clear to current stakeholders and future
stakeholders that the Company no longer owns Mupane and is
concentrating on progressing both Galaxy Gold and the Summit Mine
and Banner Mill.
The Company believes that the share price and
the number of shares outstanding following the Consolidation will
more appropriately reflect the Company’s status as a junior gold
producer. Based on investor feedback, management believes that
while the higher share count and lower share price was appealing to
certain investors, the new proposed capital structure will be more
appealing to prospective institutional shareholders and will aid
management in its efforts to expand and diversify the Company’s
shareholder base with the goal of increasing liquidity and
establishing a trading price that more accurately reflects the
underlying value and future potential of the Company’s
operations.
The Name Change and Consolidation were approved
by shareholders on June 23, 2022. For further details on the Name
Change and Consolidation, see the Company’s press release dated May
26, 2022.
As a result of the Consolidation, the
356,366,541 common shares issued and outstanding prior to the
Consolidation will be reduced to approximately 71,273,308 common
shares. Each shareholder’s percentage ownership in the Company and
proportionate voting power will remain unchanged after the
Consolidation, except for minor changes and adjustments resulting
from the treatment of any fractional common shares. The exercise
price of the Company’s outstanding common share purchase warrants
and the number of common shares issuable thereunder have been
adjusted in accordance with the Consolidation.
In connection with the Consolidation, the
Company expects to send letters of transmittal to registered
holders of its common shares for use in transmitting their existing
share certificates (“Existing Certificates”) to the Company’s
registrar and transfer agent, TSX Trust Company, in exchange for
new certificates (“New Certificates”) representing the number of
post-Consolidation common shares to which such shareholder is
entitled as a result of the Consolidation. No delivery of a New
Certificate to a shareholder will be made until the shareholder has
surrendered its Existing Certificates. Until surrendered, each
Existing Certificate shall be deemed for all purposes to represent
the number of post-Consolidation common shares to which the holder
is entitled as a result of the Consolidation.
About Galane Gold
Galane Gold is an un-hedged gold producer and
explorer with mining operations and exploration tenements in South
Africa and New Mexico. Galane Gold is a public company and its
shares are quoted on the TSX Venture Exchange under the symbol “GG”
and the OTCQB under the symbol “GGGOF”. 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.
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
effective date of the Name Change and Consolidation, 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 South Africa and New Mexico;
regulatory, consent or permitting delays; risks relating to the
Company’s exploration, development and mining activities being
situated in South Africa and New Mexico; 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; the
ability of the communities in which the Company operates to manage
and cope with the implications of COVID-19; the economic and
financial implications of COVID-19 to the Company; 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.
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.
For further information please
contact:Nick BrodieCEO, Galane Gold Ltd.+ 44 7905
089878Nick.Brodie@GalaneGold.comwww.GalaneGold.com
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