TIDMGAL
RNS Number : 6487H
Galantas Gold Corporation
19 November 2018
GALANTAS GOLD CORPORATION
TSXV - "GAL" - AIM
GALANTAS ANNOUNCES PROPOSED PRIVATE PLACEMENT
November 19, 2018. . Galantas Gold Corporation (the "Company" or
"Galantas"), the AIM and TSX Venture Exchange ("TSXV") quoted gold
producer and explorer with a 100% interest in Northern Ireland's
Omagh gold mine, announces a proposed private placement of common
shares (the "Private Placement").
The net proceeds to be raised by the Private Placement are
intended to be used for working capital purposes and to achieve
full production status. Galantas has set a production target of
30,000 ounces of gold in concentrate per year (see note 1). The
Company expects the Private Placement to complete the equity
element of funding required to achieve the target.
The Private Placement is for a minimum of 64,000,000 shares and
a maximum of 80,000,000 shares, at an issue price of
UKGBP0.05(CAD$0.086) per share for minimum gross proceeds of
UKGBP3,200,000 (CAD$5,130,000) and maximum gross proceeds of
UKGBP4,000,000 (CAD$6,879,080). A four month plus one day hold
period will apply to the shares and the shares will rank pari passu
with the existing shares in issue of the Company. The Private
Placement will be part brokered. Insiders are expected to
participate in the placing.
The Company has received a provisional indication from Melquart
Ltd. (Melquart), who currently hold 19.2% of the company's shares,
to subscribe for a up to a maximum of GBP1,400,000. On the issuance
of the minimum number of placing shares, the maximum subscription
from Melquart would equate to a holding by Melquart, post Private
Placement, of approximately 25% of the Company's total common
shares.
Under Canadian securities law, Melquart would automatically be
considered a "control person" if they owned 20% or more of the
common shares of the Company. Canadian regulations require that
consent of a majority of disinterested shareholders is required for
the creation of new control persons. The Company expects to achieve
this via a written resolution.
Mr. Roland Phelps, President & CEO, Galantas Gold
Corporation, intends to, subject to approvals, exchange shares for
debt owed to him personally, in the amount of GBP500,000, on the
same terms as the Private Placing ("the Shares for Debt
Arrangement" or "Arrangement"). Mr. Phelps, by virtue of his
executive role in the Company, is deemed a "control person" under
Canadian regulations. The consent of a majority of disinterested
shareholders is required by the regulations to enact such an
Arrangement. The Company will be seeking that by means of a written
resolution.
The Private Placement and the Shares for Debt Arrangement, will
be subject to TSXV and regulatory approval.
In the case of the receipt of subscriptions above the minimum
number of shares, the company expects to prioritise qualifying
investors (see note 2) who are existing shareholders.
A further announcement will be made in due course detailing the
results of the Private Placement.
The Company has received, through an advisor, expressions of
interest in the Company's Omagh properties and operations. The
Company will advise shareholders if matters of substance arise that
may lead to corporate action.
The underground gold mine at Omagh has commenced limited
production of gold concentrate, from feed produced in development
of the Kearney vein and Galantas announced the first delivery of
gold and silver concentrate on November 5, 2018. The processing
plant uses a non-toxic flotation process to produce concentrates,
without the use of cyanide or mercury. It satisfies strict
environmental monitoring criteria set by the Northern Ireland
regulatory authorities and has a zero lost time accident record
since the start of underground development.
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.
Galantas Gold Corporation's Issued and Outstanding Shares total
209,686,805.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Note 1 : For further details see Galantas NI 43-101 / PERC
Technical Report, July 2014 on www.sedar.com and www.galantas.com
.
Note 2 : A qualifying investor is one that meets the
requirements of the relevant securities laws of the jurisdiction in
which they are resident, in relation to the Private Placement.
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 (Nominated Adviser)
Philip Secrett, Harrison Clarke, Richard Tonthat : Telephone:
+44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker : Telephone: +44(0)20 7659 1234
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contact rns@lseg.com or visit www.rns.com.
END
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