Galane Gold, the gold producer and explorer, said this week it has completed the previously announced acquisition, via its Mupane Gold Mining Pty Ltd. of all of te issued and outstanding shares of The Northern Lights Exploration Company Pty. Ltd. (NLE).
NLE holds several prospecting licenses in the Tati Greenstone Belt in Botswana, which are adjacent to existing licenses held by Galane Gold’s Botswana subsidiaries.
The combination of NLE’s prospecting licenses and the prospecting and mining licenses currently held by Galane Gold’s Botswana subsidiaries gives Galane Gold control of what the company believes are all of the prospective gold areas in the Tati Greenstone Belt.
Galane Gold’s processing plant is centrally located on the Tati Greenstone Belt in the Mupane mining license area.
In consideration for the acquisition, Galane Gold has issued to the NLE shareholders an aggregate of 3,125,000 common shares and promissory notes with an aggregate principal amount of $400,000.
The contingent share issuances noted above are cumulative. For example, if 1,000,000 or more ounces of National Instrument 43-101 compliant measured mineral resource is defined within the NLE license areas and/or is mined within the NLE license areas, then the total share consideration paid to NLE shareholders will be 11,750,000 Galane Gold common shares being comprised of the initial 3,125,000 common shares and an additional 8,750,000 common shares.
“One of the most appealing aspects of these properties is that the previous high calibre exploration work carried out by Gallery Gold Ltd. and Iamgold Corp. was not comprehensively followed up on in the context of the then prevailing much lower gold prices. Exploration ceased for the most part in late 2005, and then completely in early 2007. Only some of the exploration targets were investigated further on the ground and even then, not fully in some cases. Many of the targets received little or no attention,” said Galane Gold Chief Geologist Charles Byron.
Galane Gold CEO Philip Condon said completing the acquisition of NLE is a major milestone for the company.
“Combining the existing Galane Gold exploration tenements with those of NLE means that the Company has a combined area of more than 1200km2 and control of what we believe is all prospective ground for gold exploration on the Tati Greenstone Belt,” said Condon.
He said, based on the extensive exploration work performed on the NLE license areas from 1995 to 2007, that includes a completed intensive soil geo-chemistry program across the entire greenstone area, an aeromagnetic survey of the area with geophysical analysis commenced, and substantial drill data from the previously completed exploration, as well as prior historical small scale mine workings, we have a long list of priority exploration targets throughout the area.
“We are optimistic that we will identify new sources of gold and leverage our existing assets and infrastructure to bring these targets into production,” he said.
Galane Gold will be immediately implementing an exploration program that will build on the previously completed extensive work.