Login to your account

Username *
Password *
Remember Me

Canadian mining company, Galane Gold (BSE: GG), which operates Mupane Gold Mining near Francistown, was delisted from the Botswana Stock Exchange (BSE) for non-payment of annual listing fees, Mmegi Business has learnt.


In a statement last week, the BSE said it has taken a decision to unilaterally terminate the listing of Galane Gold.


The termination follows an earlier suspension that was imposed on the company on July 13, 2017.


BSE head of market development, Tebogo Moribame said the company contravened section 17.11 of the BSE listings requirements on non-payment of fees, which states that securities may be removed from the list unless fees and charges, due and unpaid, are paid within one month after written notice of non-payment has been given under authority of the committee.

She also noted that Section 3.1 states that every company whose securities are listed, shall comply with the listings requirements.


Although Moribame did not specify on the amount unpaid, BSE listings requirements states that an issuer whose securities are quoted on a recognised external stock exchange is required to pay an original listing fee of 0.025% of market capitalisation. This fee is subject to a minimum of P50,000 and a maximum of P200,000 or such other amount as the committee may fix in respect of each class of security so quoted.


At the time of being delisted, Galane Gold had a market capitalisation of about P354 million.


In addition, an issuer who is dual listed on the BSE is mandated to pay an annual sustaining fee of P70,000 for the following year ended June 30 or such other amount as the committee may


fix in respect of each class of security so quoted.


There is also an annual review fee of P4,000 in respect of all companies listed on the BSE.


BSE said Galane Gold failed to pay the fees despite having been advised to do so, leading to the suspension and subsequent delisting of the company. Prior to its termination, Galane Gold was dual listed on the Toronto Stock Exchange (TSX) venture board and on the BSE. Its shares on the BSE were listed in August 2012.


In a statement accompanying the miner’s results for the period, Galane said its ability to continue, as a going concern is dependent upon the ability to generate cash flow from operations; renegotiate existing payment terms and equity financing.


Of the 142,628,884 shares issued by Galane Gold on the BSE, Moribame said, only 130 were held in the Botswana local register by one investor. She stated that small investors that held shares in Galane Gold will continue to own their shares, but can now only trade them at the primary market, the Toronto bourse.


Should the company wish to list again on the BSE, Moribame said it would be required to apply like any other company.


Recently, the company has been experiencing financial difficulties amidst increasing financial losses and widening working capital deficit.


For the three months ended March 31, 2017, Galane recorded a net loss of $4.3 million (P43 million).


We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Use.