TORONTO, March 25, 2020 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) has acted swiftly to put precautions in place to manage the risk of COVID-19 to staff, the Company, contractors, the local communities, and all other stakeholders. The Company has had no reported cases of COVID-19 at either of our projects and we continue to ensure that our operations follow the latest professional guidance.
The announcement yesterday by the Republic of South Africa that all mines must be put on care and maintenance means that starting Friday this week, production at our Galaxy operations will temporarily cease. We will instigate care and maintenance in a way that allows us to restart operations almost immediately once we are advised by the government that we can do so. We will also put controls in place to retain funds to initiate the re-start. The government of South Africa announced that the decreed lockdown is scheduled until April 16, 2020, and we do not foresee at this point that it will have a material long term effect on our operations.
The South Africa lockdown will also affect our Mupane operations in Botswana, as the majority of its critical supplies are sourced from South Africa. We had already commenced increasing stores in anticipation of such an action and we predict that we have sufficient stocks to maintain operations until the end of April. We are also working closely with the government of the Republic of Botswana to identify which of our imported supplies are critical so that they can be continued to be shipped from South Africa if there is an urgent requirement. This currently means that if the lockdown finishes as anticipated, we have sufficient supplies to continue operations.
In addition, Mupane’s off-taker has notified us that they will not be able to ship our gold doré during this interim period. We are currently working with them to conclude an alternative arrangement, if required.
We had already formed a risk committee to identify the main threats to the Company and its operations. Due to the controls already put into place by the Republic of South Africa and the Republic of Botswana, it appears that some of the transmission risks have already been mitigated.
With regards to operational risks, steps have already been taken to minimize them. The Company’s key management and its board of directors will meet on a weekly basis to review their effectiveness and make any adjustments as deemed necessary to minimize any potential operational disruption, while ensuring the welfare and safety of our workforce and neighbouring communities.
Finally, it should be noted that above all things we put the health and safety of our employees and contractors first. As a result, we have instigated an education programme on COVID-19 at both the Galaxy and Mupane properties for our employees and contractors. This programme discusses what is required to minimise the chance of infection, recognising the symptoms of COVID-19, and what action to take if employees or contractors develop symptoms.
In addition, the Company has started a rigorous testing regime at both properties to monitor our employees and contractors’ health to identify anybody showing early symptoms. The Company has also established isolation procedures for any potentially infected individual.
Galane Gold CEO, Nick Brodie, commented: “During this difficult period, our objective is to ensure we will be a stronger company after the current pandemic subsides, by acting in the best long-term interest of all of our stakeholders.”
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. 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.
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 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. Forward-looking statements may specifically include, without limitation, statements relating to the Company’s ability to instigate care and maintenance in a specific manner; the Company’s ability to put proper controls in place to retain funds; the estimated impact of COVID-19 on the Company’s business and operations; the availability of critical supplies amidst COVID-19; and the ability to identify critical threats and risks to the Company. 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 Botswana and South Africa; regulatory, consent or permitting delays; risks relating to the Company’s exploration, development and mining activities being situated in Botswana and South Africa; 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:
CEO, Galane Gold Ltd.
+ 44 7905089878