TIDMGAL
RNS Number : 3019L
Galantas Gold Corporation
21 December 2018
GALANTAS GOLD CORPORATION
TSXV and AIM: Stock Symbol - 'GAL'
GALANTAS CLOSES SECOND PART OF PRIVATE PLACEMENT
Date: December 21, 2018. 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
that the second and final part of the private placement (the
"Private Placement") for 80,000,000 common shares ("Common Shares")
for gross proceeds of CDN$6,900,000 GBPGBP4,000,000) previously
outlined in the disclosure dated November 19, 2018 and updated on
December 5, 2018 has closed.
The second part of the Private Placement has received
conditional approval of the TSX Venture Exchange and closed on
December 21, 2018 for 22,564,935 Common Shares for receipt of
CDN$1,946,226 (GBPGBP1,128,247) (the "Second Closing"). The Second
Closing pertains to Miton Asset Management Limited ("Miton"), a UK
based investment institution, who has subscribed for a total of
50,000,000 Common Shares in total under the Private Placement,
representing 16.68% of the Company's issued and outstanding Common
Shares. Miton acquired 27,435,065 Common Shares in the first
closing, representing 9.9% of the Company's issued and outstanding
shares. On completion of the Second Closing, Miton has become an
insider of the Company, by acquiring an additional 22,564,935
Common Shares. Miton is the only subscriber in the Second Closing
of the Private Placement. The Private Placement is subject to final
approval from the TSX Venture Exchange.
A four month hold period (the "Hold Period") will apply to the
Common Shares of the Private Placement. The Hold Period will expire
for the Second Closing on April 22, 2019. The shares issued
pursuant to the Private Placement will rank pari passu with the
existing Common Shares in issue of the Company.
In addition, the TSX Venture Exchange has approved Melquart Ltd.
("Melquart") becoming a control person of the Company.
Roisin Magee, a Director of Galantas Gold Corporation, has
participated in the Private Placement with a subscription for
500,000 Common Shares. Ms. Magee now owns approximately 0.17% of
the Company's issued and outstanding Common Shares.
Commissions payable in relation to the Private Placement total
CDN$338,790 / GBPGBP196,400.
The subscription made by Miton is a related party transaction,
within the meaning of TSX Venture Exchange Policy 5.9 and
Multilateral Instrument 61-101 ("MI 61-101"). The Company has
relied on the exemptions from the formal valuation and minority
approval requirements of MI 61-101 contained in sections 5.5(g) of
MI 61-101 in respect of related party participation.
The Company has applied for admission of the 22,564,935 Common
Shares in connection with the second closing to trade on the AIM
market of the London Stock Exchange ("Admission") with Admission
expected to occur on or around December 28, 2018.
Following Admission and the Second Closing of the Private
Placement, Galantas Gold Corporation's Issued and Outstanding
Common Shares total 299,686,805.
A further announcement will be released upon receipt of final
approval of the Private Placement from the TSX Venture
Exchange.
Roland Phelps, President & CEO, Galantas Gold Corporation,
said, "I am delighted to welcome Miton Asset Management Limited as
a new London financial institution to our shareholder list and
welcome the increased participation by Melquart Ltd. and other
investors. The funding allows the Company to proceed to commercial
production at the Omagh gold-mine."
The net proceeds raised by the Private Placement are intended to
be used for working capital purposes and to fund commercial
production underground at the Omagh gold mine.
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.
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 (AIM Nominated Advisor)
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
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END
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