May 4 2022Reviewed by Alex Smith
Galane Gold Ltd. (“Galane Gold” or the Company”) announced that it has completed the sale of its Mupane gold mine in Botswana, called the Mupane Property, to Hawks Mining Company Proprietary Limited (“Hawks Mining”), a Botswana-based company owned by members of the Company’s local Botswana management team.
Image Credit: Shutterstock.com/ Evgeny_V
The Transaction’s entire specifics were disclosed in the news announcement dated February 7th, 2022, and as of May 3rd, 2022, all of the requirements for the Transaction’s completion had been satisfied.
As the cornerstone of Galane Gold for the last 11 years, Mupane has been a critical part of our operations and a springboard to other opportunities, while also providing certain challenges to enable building a strong executive team. We transitioned Mupane from an open pit short-term high-cost producer to an underground mine, with an extended life and significantly reduced operating costs. We have now leveraged those skills to put Galaxy into commercial production, and endeavour to do the same at Summit.
Nick Brodie, Chief Executive Officer, Galane Gold Ltd.
Brodie added, “The Transaction also significantly improves our balance sheet and provides an opportunity for Galane Gold to provide a greater return to our stakeholders.”
We thank Galane Gold for the support they have provided in helping us complete this transaction and look forward to their continued guidance. This is a very exciting and important event with the only producing gold mine in Botswana being transitioned into majority local ownership. This is a significant first step for Hawks Mining, who like Galane Gold, intends to build a team to take on other opportunities specifically in Botswana.
Cedric Sam, Hawks Mining Company Proprietary Limited
I would like to reiterate that our experience with Mupane in Botswana over the past 11 years has been outstanding in every respect. While we are sad to be leaving such a constructive and progressive country, we are very pleased to be part of a transaction that will result in one of the largest businesses in the country becoming wholly-owned by the local management team.
Ravi Sood, Chariman, Galane Gold Ltd.
Source: https://www.galanegold.com/