TIDMGAL
RNS Number : 9822I
Galantas Gold Corporation
30 November 2018
GALANTAS GOLD CORPORATION
TSXV - "GAL" - AIM
GALANTAS RECEIVES AGREEMENTS FOR MAXIMUM AMOUNT IN PRIVATE
PLACEMENT
November 30, 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, is pleased to announce that it has received
Subscription Agreements ("Subscription Agreements") regarding the
proposed private placement of common shares (the "Private
Placement") previously announced on November 19, 2018.
Subscription Agreements have been received for the maximum
amount of 80,000,000 common shares of no par value in the Company
("Common Shares") for the gross amount of UKGBP4 million
(CAD$6,879,080).
Roland Phelps, President & CEO, Galantas Gold Corporation,
as previously announced intends to, subject to TSXV and shareholder
approvals, exchange shares for debt owed to him personally, in the
amount of GBP500,000 for 10,000,000 Common Shares, on the same
terms as the Private Placement (the "Arrangement").
Melquart Ltd. ("Melquart") has scaled back its anticipated
subscription amount to accommodate other subscribers. Melquart, who
currently holds 19.18% of the Company's Common Shares, has
subscribed for UKGBP1.1 million for 22,000,000 shares. On the
issuance of Common Shares in the Private Placement and Arrangement,
Melquart's holding is anticipated to become approximately 20.76% of
the Company's total Common Shares.
Miton Asset Management, through three of its funds, is
subscribing for 50,000,000 Common Shares at an aggregate
subscription price of GBP2.5 million, which equates to
approximately 16.68% of the Company's total Common Shares post
completion of the Private Placement and Arrangement.
Róisín Magee, a Director of the Company, is subscribing for
500,000 Common Shares. Ms. Magee does not currently hold any Common
Shares in the Company and post completion of the Private Placement
and Arrangement will therefore have an interest in 500,000 Common
Shares or 0.17% of the Company's total Common Shares.
Ms. Magee and Mr. Phelps are deemed to be related parties of the
Company by virtue of being Directors of the Company and Melquart is
deemed to be a related party of the Company by virtue of being a
Substantial Shareholder (as defined in the AIM Rules for
Companies). As a consequence, the Directors of the Company
(excluding Ms. Magee and Mr. Phelps) consider, having consulted
with their nominated adviser, Grant Thornton UK LLP, that the terms
of the Private Placement and the Arrangement are fair and
reasonable insofar as shareholders are concerned.
The Private Placement and Arrangement are both subject to TSXV
and regulatory approvals.
A further announcement will be made in due course with final
details of the Private Placement and Arrangement.
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.
Galantas is pleased to announce that it has received the award
of Green status in the 2017 NI Environmental Benchmarking Survey,
Business in the Community, Northern Ireland.
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.
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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END
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