VANCOUVER, BC, Dec. 4, 2024
/PRNewswire/ - Galiano Gold Inc. ("Galiano" or the
"Company") (TSX: GAU) (NYSE American: GAU) is pleased
to announce that it has terminated its gold purchase and sale
agreement (the "Agreement") with Red Kite Opportunities Master Fund
Limited ("Red Kite") for total cash consideration of US$13 million. Under the Agreement, the Company
had been required to sell 100% of gold production from the Asanko
Gold Mine (the "AGM"), up to a maximum of 2.2 million ounces, at a
spot price selected by Red Kite
during a nine-day quotational period following shipment of gold
from the AGM. At the time of termination, the AGM had delivered
1,706,407 gold ounces to Red
Kite under the Agreement.
Over the past two years, during a period of elevated gold prices
and volatility, the differential between the AGM's realized gold
price under the Agreement and the spot price of gold on the gold
delivery date, has resulted in a discount of approximately 2%.
"With the Company's strong, debt-free balance sheet, we are
pleased to have the financial flexibility to terminate this legacy
offtake agreement as part of our prudent capital allocation
strategy," said Matt Badylak,
President and Chief Executive Officer of Galiano. "This strategic
investment allows the AGM to sell gold at market prices, delivering
meaningful value as we advance our business plan."
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of
value creation for all stakeholders through production, exploration
and disciplined deployment of its financial resources. The Company
owns the AGM, which is located in Ghana, West
Africa. Galiano is committed to the highest standards for
environmental management, social responsibility, and the health and
safety of its employees and neighbouring communities. For more
information, please visit www.galianogold.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news
release constitute "forward-looking statements" within the meaning
of applicable U.S. securities laws and "forward-looking
information" within the meaning of applicable Canadian securities
laws, which we refer to collectively as "forward-looking
statements". Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future conditions
and courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but
are not limited to: statements regarding the Company's operating
plans for the AGM and timing thereof; expectations and timing with
respect to current and planned drilling programs, and any
additional work programs to be undertaken by the Company and
potential exploration opportunities. Such forward-looking
statements are based on a number of material factors and
assumptions, including, but not limited to: development plans and
capital expenditures; the price of gold will not decline
significantly or for a protracted period of time; the accuracy of
the estimates and assumptions underlying mineral reserve and
mineral resource estimates; the Company's ability to raise
sufficient funds from future equity financings to support its
operations, and general business and economic conditions; the
global financial markets and general economic conditions will be
stable and prosperous in the future; the AGM will not experience
any significant uninsured production disruptions that would
materially affect revenues; the ability of the Company to comply
with applicable governmental regulations and standards; the mining
laws, tax laws and other laws in Ghana applicable to the AGM will not change,
and there will be no imposition of additional exchange controls in
Ghana; the success of the Company
in implementing its development strategies and achieving its
business objectives; the Company will have sufficient working
capital necessary to sustain its operations on an ongoing basis and
the Company will continue to have sufficient working capital to
fund its operations; and the key personnel of the Company will
continue their employment.
The foregoing list of assumptions cannot be considered
exhaustive.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein. Some of the risks and other factors which could cause
actual results to differ materially from those expressed in the
forward-looking statements contained in this news release, include,
but are not limited to: mineral reserve and mineral resource
estimates may change and may prove to be inaccurate; metallurgical
recoveries may not be economically viable; life of mine estimates
are based on a number of factors and assumptions and may prove to
be incorrect; actual production, costs, returns and other economic
and financial performance may vary from the Company's estimates in
response to a variety of factors, many of which are not within the
Company's control; inflationary pressures and the effects thereof;
the AGM has a limited operating history and is subject to risks
associated with establishing new mining operations; sustained
increases in costs, or decreases in the availability, of
commodities consumed or otherwise used by the Company may adversely
affect the Company; adverse geotechnical and geological conditions
(including geotechnical failures) may result in operating delays
and lower throughput or recovery, closures or damage to mine
infrastructure; the ability of the Company to treat the number of
tonnes planned, recover valuable materials, remove deleterious
materials and process ore, concentrate and tailings as planned is
dependent on a number of factors and assumptions which may not be
present or occur as expected; the Company's mineral properties may
experience a loss of ore due to illegal mining activities; the
Company's operations may encounter delays in or losses of
production due to equipment delays or the availability of
equipment; outbreaks of COVID-19 and other infectious diseases may
have a negative impact on global financial conditions, demand for
commodities and supply chains and could adversely affect the
Company's business, financial condition and results of operations
and the market price of the common shares of the Company; the
Company's operations are subject to continuously evolving
legislation, compliance with which may be difficult, uneconomic or
require significant expenditures; the Government of
Ghana may increase the Growth and
Sustainability Levy, increasing the Company's expenditures; the
Company may be unsuccessful in attracting and retaining key
personnel; labour disruptions could adversely affect the Company's
operations; recoveries may be lower in the future and have a
negative impact on the Company's financial results; the lower
recoveries may persist and be detrimental to the AGM and the
Company; the Company's business is subject to risks associated with
operating in a foreign country; risks related to the Government of
Ghana defaulting on local and
international bonds; risks related to the Company's use of
contractors; the hazards and risks normally encountered in the
exploration, development and production of gold; the Company's
operations are subject to environmental hazards and compliance with
applicable environmental laws and regulations; the effects of
climate change or extreme weather events may cause prolonged
disruption to the delivery of essential commodities which could
negatively affect production efficiency; the Company's operations
and workforce are exposed to health and safety risks; unexpected
costs and delays related to, or the failure of the Company to
obtain, necessary permits could impede the Company's operations;
the Company's title to exploration, development and mining
interests can be uncertain and may be contested; geotechnical risks
associated with the design and operation of a mine and related
civil structures; the Company's properties may be subject to claims
by various community stakeholders; current, ongoing and future
legal disputes and appeals from third parties may be successful,
and the Company may be required to pay settlement costs or damages;
risks related to limited access to infrastructure and water; risks
associated with establishing new mining operations; the Company's
revenues are dependent on the market prices for gold, which have
experienced significant recent fluctuations; the Company may not be
able to secure additional financing when needed or on acceptable
terms; the Company's shareholders may be subject to future
dilution; risks related to changes in interest rates and foreign
currency exchange rates; risks relating to credit rating
downgrades; changes to taxation laws applicable to the Company may
affect the Company's profitability and ability to repatriate funds;
risks related to the Company's internal controls over financial
reporting and compliance with applicable accounting regulations and
securities laws; future securities offerings issued pursuant to the
Company's base shelf prospectus may not be successful depending on
external market factors outside of the Company's control; risks
related to information systems security threats; non-compliance
with public disclosure obligations could have an adverse effect on
the Company's stock price; the carrying value of the Company's
assets may change and these assets may be subject to impairment
charges; risks associated with changes in reporting standards; the
Company may be liable for uninsured or partially insured losses;
the Company may be subject to litigation; damage to the Company's
reputation could result in decreased investor confidence and
increased challenges in developing and maintaining community
relations which may have adverse effects on the business, results
of operations and financial conditions of the Company and the
Company's share price; the Company may be unsuccessful in
identifying targets for acquisition or completing suitable
corporate transactions, and any such transactions may not be
beneficial to the Company or its shareholders; the Company must
compete with other mining companies and individuals for mining
interests; the Company's growth, future profitability and ability
to obtain financing may be impacted by global financial conditions;
the Company's common shares may experience price and trading volume
volatility; the Company has never paid dividends and does not
expect to do so in the foreseeable future; the Company's
shareholders may be unable to sell significant quantities of the
Company's common shares into the public trading markets without a
significant reduction in the price of its common shares, or at all;
and the risk factors described under the heading "Risk Factors" in
the Company's Annual Information Form.
Although the Company has attempted to identify important
factors that could cause actual results or events to differ
materially from those described in the forward-looking statements,
you are cautioned that this list is not exhaustive and there may be
other factors that the Company has not identified. Furthermore, the
Company undertakes no obligation to update or revise any
forward-looking statements included in, or incorporated by
reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither the Toronto Stock Exchange nor the Investment
Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this news release.
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SOURCE Galiano Gold Inc.
