Galane Gold Ltd Releases Financial and Operating Results for Q2 2015

Galane Gold Ltd. (TSXV:GG) has released its financial results for the three and six months ended June 30, 2015. One of the key highlights was the April 29, 2015 announcement of an agreement to acquire Galaxy Gold Mining Ltd.
As per the press release:

Operating cash cost of $1,457 per ounce (excluding royalties).(1) Net loss of $3,307,159. Cash balance of $4,308,145 at the end of the quarter. Cash in flows from operating activities of $1,745,036. Cash flows used in investing activities of $2,498,279 which included infrastructure and initial development for Tau underground. Produced 4,829 ounces of gold. Total ore mined of 88,937 tonnes at an average grade of 1.33 grams per tonne. Total ore milled of 206,440 tonnes at a head grade of 1.08 grams per tonne. Mining licence for Jim’s Luck received which has a measured and indicated mineral resource of 93,004 ounces of gold and a total inferred mineral resource of 46,424 ounces of gold.
On April 29, 2015 the Company announced an agreement to acquire Galaxy Gold Mining Ltd. The acquisition of Galaxy is subject to the satisfaction or waiver of various closing conditions including the completion of due diligence by the Company and the receipt of applicable regulatory approvals, including the approval of the TSX Venture Exchange. On June 24, 2015, the Company extended the closing date to August 31, 2015. On August 31, 2015, the parties further extended the closing date to September 30, 2015.
The Galaxy due diligence process has continued and we have agreed with their majority shareholders an extension to ensure that we produce a comprehensive business model that can provide considerable benefit to both sets of shareholders.” Note: (1)Operating cash cost excluding royalties is a non-GAAP measure. Refer to “Supplemental Information to Management’s Discussion and Analysis” in the Company’s Management’s Discussion and Analysis for the three and six months ended June 30, 2015 for reconciliation to measures reported in the Company’s financial statements.

Galane Gold CEO, Nick Brodie commented:

We started the development of Tau underground in quarter one 2014 as part of our long term plan for Mupane. In quarter two 2015 we completed the first phase of the development of Tau underground and we have now commenced commercial production in quarter three on the Eastern ore body. Management must be commended for completing the transition to an underground mining operation on time and within budget. We are looking forward to a marked increase in production and improvement in results in the last two quarters of the year. We succeeded in generating positive cash flows from operating activities in quarter two 2015 to continue funding the Tau underground development costs.

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