AMN - BOTSWANA: Galane enters earn-in with B2Gold

Galane Gold Ltd has entered into an earn-in option agreement with B2Gold Corp covering two gold prospecting licences around Galane's Mupane project in Botswana. The agreement excludes the company's current operations and mining licences.

Under the agreement, B2Gold has the option to indirectly acquire, in tranches, up to 70% of the shares of a newly incorporated subsidiary of Galane which has applied for the two prospecting licences over an aggregate of approximately 520sqkm.

Galane Gold CEO Nick Brodie said: “This represents a great opportunity for Galane and B2Gold to join together to target exploration in the Tati Greenstone Belt.

"The belt is highly prospective and it is hoped with our large historic exploration database, which has identified numerous targets, and B2Gold’s exploration expertise that we will identify a significant resource.”

The option is exercisable in tranches upon meeting certain exploration project-related expenditure thresholds.

The first involves B2Gold contributing US$500,000 within one year of the conditions satisfaction date.

With the second, B2Gold will receive a 51% indirect interest in the new subsidiary upon contributing an additional US$2 million in exploration project-related expenses within three years of the date.

B2Gold will receive an additional 19% indirect interest in the subsidiary upon contributing an additional US$1.5 million in exploration project-related expenses within four years of the date.

It is expected that the earn-in agreement will be replaced by a definitive shareholders agreement governing the parties’ interests in the new company.

After the conditions satisfaction date, B2Gold will carry out exploration on the properties with guidance received from a jointly formed technical committee.

B2Gold may terminate the agreement if all conditions are not fulfilled or waived by June 13, 2018.

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa.

www.galanegold.com