Galantas Gold Corporation LOAN AGREEMENTS AND ISSUANCE OF BONUS WARRANTS (6499K)
April 12 2018 - 2:01AM
UK Regulatory
TIDMGAL
RNS Number : 6499K
Galantas Gold Corporation
12 April 2018
GALANTAS GOLD CORPORATION
TSXV and AIM: Stock Symbol - 'GAL'
GALANTAS ANNOUNCES LOAN AGREEMENTS AND ISSUANCE OF BONUS
WARRANTS
Date : April 12, 2018. Galantas Gold Corporation (the "Company"
or "Galantas"), the AIM and TSXV quoted gold producer and explorer
with a 100% interest in Northern Ireland's Omagh gold mine, is
pleased to announce that it's operating subsidiary, Flintridge
Resources Ltd. ("Flintridge"), has signed a concentrate pre-payment
agreement / loan facility for USD$1.6 million (CDN$2.012 million)
with Ocean Partners UK Ltd. ("Ocean" or the "Lender" and together
the "Ocean Loan Facility") and an increased, on-demand loan
facility with G&F Phelps Ltd. of GBP600,000 (the "G&F
Phelps Loan Facility", collectively with the Ocean Loan Facility
the "Loan Agreements"). The Loan Agreements are to be used for
further development of the Omagh Mine and working capital.
The interest margin of the Ocean Loan Facility is set at USD 12
month LIBOR + 8.75%. No interest shall be charged for 6 months and
repayments shall commence against deliveries in 2019. There is a
USD$25,000 arrangement fee on completion. The maturity date of the
Ocean Loan Facility will be December 31, 2020.
The G&F Phelps Loan Facility has increased to a maximum of
UKGBP2,154,118 and the interest charged has increased to 6.75% +
USD 12 month LIBOR. No arrangement fee is due on the G&F Phelps
Loan Facility. G&F Phelps Ltd. is a company owned by Roland
Phelps, President & CEO, Galantas Gold Corporation. As Mr.
Phelps is a related party, in accordance with AIM rules, the
Directors of the Company consider, having consulted with their
nominated adviser, Grant Thornton UK LLP, that the terms of the
G&F Phelps Loan Facility are fair and reasonable insofar as
shareholders are concerned.
In respect of the Ocean Loan Facility, a fixed and floating
security, subordinated to an existing security to G&F Phelps
Ltd., is being put in place over Flintridge assets. G&F Phelps
Ltd. has a first charge on Flintridge assets in respect of its loan
facility and the Lender required an intercreditor agreement between
G&F Phelps Ltd. and the Lender.
As consideration for providing the Ocean Loan Facility, the
Lender will receive upon closing of the Loan Agreements, 15,000,000
bonus warrants of Galantas ("Bonus Warrants") under the TSXV Policy
5.1 - Loans, Loan Bonuses, Finder's Fees and Commissions. Each
Bonus Warrant will be exercisable into one common share of Galantas
(a "Bonus Share") at an exercise price of CDN$0.1575 per Bonus
Share, being 150% of the TSXV closing price the day before this
announcement. The Bonus Warrants will have a maximum life of two
years (the "Expiry Time") and the Bonus Shares will be subject to
an initial four month plus one day hold period from the date of
issuance of the Bonus Warrants. In the event that the weighted
average closing price per common share of the Company is more than
$0.20 per share for more than five consecutive trading days, the
Company shall be entitled to accelerate the Expiry Time to a date
that is 30 days from the date on which the Company announces the
accelerated Expiry Time by press release. No Bonus Warrants are to
be issued in respect of the G&F Phelps Loan Facility. The Bonus
Warrants are subject to TSXV and regulatory approval.
Roland Phelps, President & CEO, Galantas Gold Corporation,
said, "I am delighted to welcome the participation of Ocean
Partners UK Ltd. in our funding and I am pleased to be able to
increase my own participation in the finance arrangements."
Siva Pillay, CEO, of Ocean, commented, "We are pleased to
support the Galantas management team as they continue to develop
the Omagh gold mine towards a restart of production. Developing
long term relationships with solid counterparties like Galantas is
at the core of Ocean Partners' business."
Neither TSXV nor its Regulation Services Provider (as that term
is defined in the policies of the TSXV) accepts responsibility for
the adequacy or accuracy of this release.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries : Galantas Gold Corporation
L. Jack Gunter P.Eng - Chairman, Roland Phelps C.Eng - President
& CEO
Email: info@galantas.com Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat: Telephone: +44(0)20 7383
5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker: Telephone: +44(0)20 7659 1234
This information is provided by RNS
The company news service from the London Stock Exchange
END
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