OAKVILLE, ON, Jan. 28, 2015 /CNW/ – Giyani Gold Corp. (TSXV: WDG, JSE: GIY) (“Giyani”) is pleased to provide a corporate update on its most recent developments and strategy for 2015.
Duane Parnham, Executive Chairman of Giyani Gold, made the following comments: “Giyani has entered the new year with several opportunities in the resource sector and a strategy that when executed will fuel our growth while protecting our loyal shareholder base. We have strong prospects and a committed team of professionals working for a common goal and I am confident Giyani will deliver success in 2015.”
Giyani’s exploration permits that comprise the Giyani Gold Project in South Africa remain in good standing and it is management’s belief that a sizable gold deposit may exist near historic mining sites contained in these permits. Giyani’s exploration permits will need to be extended and upgraded on or before July 10, 2015. Giyani continues to work towards recovering the funds owed to it by Corridor Mining Resources, its joint venture partner on the Giyani Gold Project, and is holding conversations relating to increasing Giyani’s ownership position in the region.
Mr. Parnham further noted: “The gold market is showing signs of improvement while at the same time the TSXV index is hitting historic lows and is showing signs of bottoming which we feel provides an ideal environment for us to conduct transactions in the resource sector. I am firmly committed to building Giyani into a company that will benefit its shareholders. We’ve taken internal measures to reduce our expenditures, reduce our contractual obligations without penalty fees, and in the aim to prevent any dilutive financings no one on our management team or board of directors has drawn a salary since November of 2014. I would like to thank our shareholders for their patience and discipline through this time, and you have my assurance that my team and I will work tirelessly to build Giyani into a strong company.”
Giyani is the largest shareholder of Canoe Mining Ventures Corp. (TSXV: CLV) (“Canoe”) with a 44.6% interest. Duane Parnham was appointed as President and CEO of Canoe on October 2, 2014 and since that time has worked towards consolidating the Shebandowan Copper-Gold Belt North of Thunder Bay, Ontario executing, most recently, a transaction to acquire a project from Glencore. Giyani has signed a voluntary escrow arrangement with Canoe to align with other escrowed shareholders and protect the value of Canoe with the right balance of liquidity should it be needed. It is Giyani’s belief that Canoe’s strategic position and compliant gold resources will contribute significantly to the Giyani balance sheet in 2015.
As previously announced, the agreement between Giyani and the shareholders of Horizon Enerji A.Ş and Sumo Coal (Pty) Ltd. expired on December 31, 2014. Until such a time that a new agreement is signed between all parties, no further corporate activities will be undertaken or announcements will be made relating to this transaction.
Duane Parnham commented: “Giyani worked very hard and gathered great public support in moving a transaction forward with Horizon and Sumo. It is unfortunate that in the face of poor market conditions the consultant we retained was unable to assist Giyani in concluding this transaction, however we still hold an exclusive agreement, with no termination date, with this individual.”
Giyani continues to work with Lambert Private Equity LLC (“Lambert”), and the previously announced financing facility remains one source of capital which Giyani can leverage as its 2015 strategy is executed. There are no guarantees that Giyani will conclude a transaction, however the management team of Giyani is pleased with the quality of the opportunities made available to Giyani which are currently in the early stages of evaluation.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
On behalf of the Board of Directors of Giyani Gold Corp.
(signed) “Duane Parnham”
Duane Parnham, Executive Chairman
Forward Looking Statements
This news release contains certain statements that may be deemed “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Giyani believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Giyani’s management on the date the statements are made. Except as required by law, Giyani undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.