Samsung Loans Galane Gold $5M in Exchange for $50m Worth of Gold

According to a press release distributed by Galane Gold yesterday, Samsung has agreed to loan the company $5M in exchange for a minimum of 1,607 ounces of gold per month over the next 2 years. 

The total amount of gold to be repaid by Galane will be 38,568 ounces. At current prices, that equates to about 50 million dollars worth of gold. 

According to the press release, "[Galane] intends to use the proceeds of the facility to repay early and in full the outstanding debt and accrued interest owed to IAMGOLD Corporation with the balance for general corporate and working capital purposes."

Galane must be desperate for funds and Samsung is likely happy to oblige as there are not many investments one could make that would return you more than 10 times your principle in only two years. 

Galane Gold is a publicly traded, un-hedged mining and exploration company operating in Botswana. 

Samsung C&T Ltd. was founded in 1938 and was the first Korean company to lead overseas sales. It is the parent company of Samsung Group.