TIDMGAL
RNS Number : 9216A
Galantas Gold Corporation
10 June 2016
GALANTAS GOLD CORPORATION
TSXV and AIM: Stock Symbol - 'GAL'
GALANTAS CLOSES OVER-SUBSCRIBED PRIVATE PLACEMENT
Date : 10(th) June 2016. Galantas Gold Corporation (the
"Company"), the AIM and TSXV quoted gold producer and explorer with
a 100% interest in Northern Ireland's Omagh gold mine, announces
the closing of an over-subscribed private placement that was
announced 11(th) May 2016.
Placing priority was given to existing shareholders, with
18,619,841 common shares issued, at a price of CDN$0.07875 per
common share (the "Placing") for a total of CDN$1,466,312. A four
month hold period will apply, which expires on 10(th) October 2016.
The shares issued pursuant to the Placing will rank pari passu with
the existing common shares in issue of the Company.
The majority of the placement was taken up by Mr. Ross Beaty,
who acquired 12,825,397 common shares. As a consequence of the
Placing, Mr. Beaty has an interest in 28,825,397 Common Shares or
20.9% of the Company's issued common shares and continues to have
an interest in 16,000,000 warrants.
In addition to the private placement, Roland Phelps, President
& CEO, Galantas Gold Corporation, entered into a shares for
debt exchange on the same terms as the placement, including the
four month hold period, expiring 11(th) October 2016. Mr. Phelps
exchanged debt accruing to him, as of 31(st) March 2016, for
CDN$935,852 for 11,883,835 common shares (the "Debt Exchange").
Shareholder consent was received for the Debt Exchange by means of
a written resolution, with a majority of disinterested shareholder
votes consenting.
Following the Debt Exchange, Mr. Phelps holds 33,356,750 common
shares, representing 24.2% of the enlarged number of common shares
in issue.
Mr. Phelps is deemed to be a related party of Galantas by virtue
of being a Director of the Company (as defined in the AIM Rules for
Companies). As a consequence, the Directors of the Company (other
than Mr. Phelps) consider, having consulted with their nominated
adviser, Grant Thornton UK LLP, that the terms of the Debt Exchange
are fair and reasonable insofar as shareholders are concerned.
Mr. Beaty is deemed to be a related party of Galantas by virtue
of being a Substantial Shareholder of the Company (as defined in
the AIM Rules for Companies). As a consequence, the Directors of
the Company consider, having consulted with their nominated
adviser, Grant Thornton UK LLP, that the terms of the Placing to
Mr. Beaty are fair and reasonable insofar as shareholders are
concerned.
The Company has applied for admission of the common shares in
connection with the Placing and the Debt Exchange to trading on the
AIM market of the London Stock Exchange ("Admission") with
Admission expected to occur on or around 16(th) June 2016.
Roland Phelps, President & CEO, Galantas Gold Corporation,
said, "I am delighted with the support demonstrated by shareholders
and welcome the increased participation by Ross Beaty. The funding
allows us to continue to invest in the exciting Omagh gold
project."
The net proceeds raised by the Placing are intended to be used
for working capital purposes, to finance the Company's legal
commitments in regard to its underground planning consent, finance
work on conditions precedent and progress exploration
activities.
Neither 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 release.
Galantas Gold Corporation's Issued and Outstanding Shares total
137,800,830 as of 10(th) June 2016.
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: 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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