Galane Gold Ltd. reports that it has entered into a new gold concentrate offtake agreement with Ocean Partners UK Limited, dated August 3rd, 2022, for its Galaxy project. Additionally, Ocean Partners has given Galane Gold an unsecured US$3 million revolving finance facility to assist in the advancement of the Galaxy project.
We are excited to start a new partnership with Ocean Partners, who brings a wealth of experience in the industry and will assist us in reaching our objective to ramp up production at Galaxy. The new Offtake Agreement provides a higher payable percentage for the contained gold in the concentrate, which will result in increased positive cash flows for Galaxy.
Nick Brodie, Chief Executive Officer, Galane Gold Ltd.
Brodie added, “Ocean Partners is also providing the Facility which will be instrumental in helping us finance our expansion plans for Galaxy, and in particular the requirement to expand the mining fleet. These are two very positive steps for Galane Gold and its Galaxy operations and reflects our commitment to create a low-cost, long-life operation to create long term value for all of our stakeholders.”
A total of 125,000 wet metric tons of gold concentrate will be sold by Galane Gold to Ocean Partners in accordance with the provisions of the Offtake Agreement.
The price for each shipment of gold concentrate will be determined using the daily US$ London Bullion Market Association morning and afternoon quotations for gold as published in the London “Metal Bulletin” (or such other mutually agreed information source that could replace it), averaged over a quotational period, but subject to modification in line with the Offtake Agreement.
Under the terms of the Offtake Agreement, Galane Gold will pay Ocean Partners for its interest and principal on the Facility in exchange for cash or gold concentrate deliveries.
With two weeks’ notice, Galane Gold has the option to settle the whole principal balance due under the facility, including any accumulated interest, without incurring any penalties. A drawdown under the Facility could be redrawn after it has been paid back.