OAKVILLE, ONTARIO--(Marketwired - Dec. 28, 2016) - Giyani Gold Corp. (TSX VENTURE:WDG) ("Giyani" or the "Company") is pleased to provide a year-end corporate update on its accomplishments during the year 2016 and strategy for 2017.
Mr. Duane Parnham, Executive Chairman states, "As we reach the end of 2016, I thought it appropriate to provide an overview and update on the various developments that occurred during the year and where we see opportunities for continued growth in 2017. Giyani has made significant progress during the year that will without question lay a solid foundation for increased shareholder value into the future".
Milestones and progress achieved in past 12 months
- Reinstatement of common shares for trading providing liquidity and value for all our shareholders without share consolidation;
- New direction pursued that strategically positioned Giyani to explore and develop raw materials for the exciting battery technology sector;
- Board of director changes to reflect and support new business direction;
- Appointment of new CFO;
- Debt reduction, capital raise and overhead burn rate reduction success that strengthened the balance sheet;
- Strategic alliances with contractors such as BlackX for European investor communications and Boswell for project managerial services;
- Maintains ownership of over 17 million common shares of Canoe Mining Ventures which could provide sufficient non-dilutive capital;
- Received Rock Island license where company controls 45% interest in strategic gold exploration development ground;
- New presentation and website material can be expected to reflect the new business direction.
New Direction to Battery Technology:
After a number of unsuccessful attempts to change our business and add value during rough market conditions, the Company's perseverance has paid dividends by strategically positioning itself to participate as a raw materials provider for the rapidly growing battery technology sector.
Acquisitions are being pursued to gain control of a majority interest in a massive land package in Botswana that is targeting new manganese discoveries along with two past producing manganese mining projects in Zambia. Manganese is a critical element in energy storage which will be the direction for Giyani's projects going forward. In order to better pursue projects in Sub Sahara Africa, Giyani has aligned with Boswell Capital Partners, who have extensive experience in resource valuation and development along with commodity brokering in Africa.
Management and Board Additions:
The Company has made a number of Board changes during the year in support of this new initiative, adding strengthened guidance in the sector with the appointment of Mr. John Petersen while marketing our efforts through the addition of Mr. Scott Breard. We are also pleased to welcome Mr. Dan Crandall to Giyani's management team as the new Chief Financial Officer.
Giyani was successful in the completion of a non-brokered private placement in June of this year, issuing a total of 3,450,000 common shares of the Company providing necessary capital at the time to provide operating capital to pursue business opportunities.
The potential divestitures of Giyani's investments in Rock Island and Canoe Mining as well as the aggressive pursuit of collections in Q1 2017 of over $1,000,000 in funds owed from Corridor Mining and Crystal Capital, are other sources of non-dilutive financing which can inject cash into the treasury. These funds would be used to further reduce debt, finance acquisitions and support ongoing operating costs.
Giyani has also dramatically reduced its overhead throughout 2016 by negotiating reduced office space rent and other services, reducing staff and implementing an outsourcing policy for all geological and managerial commitments with the goal of maintaining low monthly burn rate while still having the support and expertise readily available to fulfill all exploration needs. Further reductions in overhead will come in the New Year with a planned delisting from the Johannesburg Stock Exchange during Q1 2017 which will significantly reduce our operating expenses and facilitate our efforts to eliminate all corporate debt.
Looking Ahead to 2017:
The recovery in the junior resource sector during 2016 resulted in a positive shift in investor sentiment, access to new capital and stronger individual share prices. Economic conditions appear to have improved since the US election in November and market optimism has provided a bounce in forecasted demand resulting in higher commodity prices. These conditions are expected to provide adequate tailwinds into the junior resource sector. Giyani is positioned to take full advantage of this cyclical reversal and feel the worst is over and one of the best times to invest in our sector is ahead in 2017/2018.
I would like to thank each and every one of our shareholders for their continued support and commitment to Giyani. I feel confident that 2017 will bring significant progress to further enhance the value of the Company and in turn reward all of our committed and loyal shareholders.
I look forward to updating you on the progress that will be made in 2017.
Additional information and corporate documents may be found on www.sedar.com and on the Giyani website: www.giyanigold.com
Neither the TSX Venture Exchange 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 news release.
On behalf of the Board of Directors of Giyani Gold Corp.
Duane Parnham, Executive Chairman
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements