Galiano Gold Inc T.GAU

Transformational Aquisition closes

[nozzpack]

 

ORIGINAL: GALIANO GOLD ANNOUNCES CLOSING OF TRANSFORMATIONAL TRANSACTION

 

2024-03-04 11:15 ET - News Release

 

(all dollar amounts in USD)

VANCOUVER, BC, March 4, 2024 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) is pleased to announce the successful completion of the previously announced (see press release dated December 21, 2023) acquisition of Gold Fields Group Ltd.'s ("Gold Fields") 45% interest in the Asanko Gold Mine (the "AGM") (the "Acquisition"). Galiano is establishing itself as a growing gold producer with robust financial strength, owning and operating one of the largest gold mines in West Africa.

Pursuant to the Acquisition, Galiano has issued to Gold Fields 28.5 million common shares ("Galiano Shares"), resulting in Gold Fields owning 19.9% of Galiano's issued and outstanding shares, and will also provide future deferred and contingent consideration of up to $85 million.

 Gold Fields has also received $65 million in cash, equivalent to its effective interest in the cash balance of the joint venture and retained a 1% net smelter return royalty capped at 447,000 ounces of gold production from the Nkran deposit. Galiano and Gold Fields have entered into an amended investor rights agreement which includes a 12-month standstill period and other customary rights, including a pre-emptive right for Gold Fields to maintain its current ownership interest.

[nozzpack]

Now that the deal with Gold Fields has formally closed, we shall see if GF proceeds to negotiate a favorable deal for Damang.. The wording suggests so.. Galiano and Gold Fields have entered into an amended investor rights agreement which includes a 12-month standstill period and other customary rights, including a pre-emptive right for Gold Fields to maintain its current ownership interest.