TIDMGAL
RNS Number : 9104Y
Galantas Gold Corporation
18 May 2021
GALANTAS GOLD CORPORATION
GALANTAS CLOSES PRIVATE PLACEMENT TO ADVANCE PLANS TO INCREASE
GOLD PRODUCTION AND ACCELERATE EXPLORATION, AND ANNOUNCES CHANGES
TO BOARD AND MANAGEMENT
May 18, 2021. Galantas Gold Corporation ("TSX-V: GAL; AIM: GAL)
("Galantas" or the "Company") is pleased to announce the closing of
its oversubscribed private placement (the "Placement" or
"Financing") previously announced on April 21, 2021, to fund the
Galantas Gold Mine in Omagh, Northern Ireland to full production
and accelerate exploration plans to expand the high-grade gold
resources.
Private Placement
The Placement resulted in the issuance of 26,663,264 units at a
price of C$0.30 per "Unit" for aggregate gross proceeds of
C$7,998,980. Each Unit comprises one Common Share and one Common
Share purchase warrant. Each warrant will be exercisable into one
additional Common Share at an exercise price of C$0.40 for 24
months from the closing date of the Placement. There is a 4-month
and one day hold period on the trading of securities issued in
connection with this Financing.
Eric Sprott, through 2176423 Ontario Ltd., a corporation that is
beneficially owned by him, acquired 6,333,333 Units for
consideration of C$1,900,000, resulting in the issuance of
6,333,333 Common Shares representing 8.6% of the issued and
outstanding shares of the Company on a non-diluted basis. Mr.
Sprott is a renowned and respected leader in the investment
community and one of the world's premier gold and silver
investors.
Michael Gentile acquired 4,000,000 Units for consideration of
C$1,200,000, resulting in issuance of 4,000,000 Common Shares
representing 5.5% of the Company's issued and outstanding Common
Shares on a non-diluted basis. Mr. Gentile is a retired
professional money manager with over 20 years' experience investing
in the mining and natural resource sector. Currently, Mr. Gentile
is an active investor in the junior mining space with significant
positions in a number of companies.
Melquart Limited ("Melquart"), a London-based investment firm
and an existing shareholder, acquired 2,400,000 Units for
consideration of C$720,000, increasing its holdings to 23,073,528
Common Shares representing 31.5% of the Company's issued and
outstanding Common Shares on a non-diluted basis (the "Melquart
Placing").
Ocean Partners UK Ltd. ("Ocean Partners") acquired 1,666,667
Units of the Private Placement, for consideration of C$500,000 and
the Company paid a finder's fee of 41,667 Units to Ocean Partners
resulting in the issuance of 1,708,334 Common Shares or 2.3% of the
Company's issued and outstanding Common Shares on a non-diluted
basis.
Roland Phelps, Galantas' retiring President and Chief Executive
Officer, acquired 166,667 Units for consideration of C$50,000,
increasing his holding to 5,100,484 Common Shares or 7.0% of the
Company's issued and outstanding Common Shares on a non-diluted
basis (the "Roland Phelps Placing").
In connection with closing, Roland Phelps has retired as
Galantas' President and Chief Executive Officer and as a member of
the Board of Directors. His role as CEO has been assumed by Mario
Stifano, an experienced mining executive who has raised significant
capital for a number of mining and resource companies in
exploration, development and production such as Lake Shore Gold
Corp. (now part of Pan American Silver Corp.). Mr. Stifano is to
join the Board of Directors, subject to regulatory approval.
Mario Stifano commented: "We are thrilled to have closed this
Private Placement with the support of such a strong and impressive
investor base. We are now eager to ramp up operations and
exploration to expand the known resources to depth and on strike,
as well as identify new drill targets. I would like to take the
opportunity to thank Mr. Phelps for his significant contributions
to the Company, and I look forward to working with the Board and
the expanded management team to drive value creation for our
stakeholders."
The Company has appointed Brendan Morris as Chief Operating
Officer in a non-board role. Mr. Morris is a chartered mining
engineer with more than 40 years of experience in mining and
quarrying in Ireland, United Kingdom, United Arab Emirates and
Canada. He has more than 25 years of practical experience in
management, in both mining and technical services roles,
supplemented by a degree in Mining Engineering and a MSc in
Business Practice. He is currently Managing Director of Lisheen
Technical and Mining Services, providing consultancy and mining
services.
The Board of Galantas has appointed Brent Omland to the Board of
Directors, subject to regulatory approval. Mr. Omland is a Canadian
Chartered Accountant with 15 years' experience in the mining,
metals and trading sectors. He has held roles with Ivernia Inc.,
Enirgi Metals Group and Teck. He is currently Chief Financial
Officer of Ocean Partners.
Ron Alexander has stepped down from the Board following many
years of valued service. The Board and management are grateful for
his contribution.
Roland Phelps commented: "I am pleased to leave Galantas in good
hands. The new capital and leadership will allow the true potential
of this exciting property to be realized. I will continue to
provide consulting services to management and the Board to ensure a
smooth transition."
Offtake Agreement
The existing Offtake Agreement with Ocean Partners has been
extended from a minimum total of 50,000 tonnes of concentrate
deliveries to a minimum total of 150,000 tonnes and marketed at
market rates.
Finder's Fees
In respect of an under-writing by Ocean Partners, the Company
paid a commitment fee of CAN$112,500 in cash.
In addition to the finder's fee paid to Ocean Partners in Units,
the Company also paid finder's fees of GBPGBP21,000 and C$398,840
to arm's length parties in cash.
Debt Matters
The maturity date of the Ocean Partners loan due on December 31,
2021 has been extended to December 31, 2023. Interest may be
deferred and added to the balance outstanding until March 31, 2022,
at which point interest will be paid monthly. The 1,700,000 Ocean
Partners warrants currently issued have been extended, subject to
regulatory approval, by 24 months to December 31, 2023.
The maturity date of the G&F Phelps Ltd loan (the "G&F
Loan") has been extended to December 31, 2023 (the "G&F Loan
Extension"). Interest may be deferred and added to the balance
outstanding until March 31, 2022, at which point interest will be
paid monthly. In consideration for extending the G&F Loan and
deferring interest, G&F Phelps Ltd has received, subject to
regulatory approval, 1,700,000 warrants exercisable into one common
share at an exercise price of C$0.33, with said warrants expiring
on December 31, 2023. G&F Phelps Ltd is a company controlled by
Mr. Phelps.
An application has been filed for admittance of 26,704,931
additional shares to AIM ("Admission") with Admission expected to
occur on or around May 21, 2021. Following Admission, Galantas Gold
Corporation's issued and outstanding Common Shares will total
73,270,468.
Related Party Transactions
Roland Phelps and Melquart are deemed to be related parties of
the Company by virtue of being a Director and a Substantial
Shareholder respectively of the Company (as defined in the AIM
Rules for Companies). As a consequence, the Directors of the
Company (excluding Mr. Phelps for the purposes of considering the
G&F Loan and the Roland Phelps Placing) consider, having
consulted with their nominated adviser, Grant Thornton UK LLP, that
the terms of the Melquart Placing, the Roland Phelps Placing and
the G&F Loan Extension are fair and reasonable insofar as
shareholders are concerned. Minority approval is not required under
MI 61-101 section 5.7 as at the time the transaction is agreed to,
neither the fair market value of the subject matter of, nor the
fair market value of the consideration for, the transaction,
insofar as it involves interested parties, exceeds 25 per cent of
the issuer's market capitalization.
Early Warning Disclosure
Eric Sprott, through 2176423 Ontario Ltd., a corporation which
is beneficially owned by him, acquired 6,333,333 Units under the
Private Placement for total consideration of $1,900,000. As a
result of the Private Placement, Mr. Sprott beneficially owns and
controls 6,333,333 Common Shares of the Company and 6,333,333
Warrants representing approximately 8.6% of the issued and
outstanding Common Shares of the Company on a non-diluted basis and
approximately 15.9% on a fully diluted basis assuming exercise of
the Warrants. Prior to the Financing, Mr. Sprott did not
beneficially own or control any securities of the Company.
The Units were acquired by Mr. Sprott for investment purposes.
Mr. Sprott has a long-term view of the investment and may acquire
additional securities of the Company including on the open market
or through private acquisitions or sell securities of the Company
including on the open market or through private dispositions in the
future depending on market conditions, reformulation of plans
and/or other factors that Mr. Sprott considers relevant from time
to time.
A copy of Sprott's early warning report will appear on
Galantas's profile on SEDAR and may also be obtained by calling Mr.
Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600,
Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
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.
Information communicated within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Enquiries
Galantas Gold Corporation Mario Stifano: Chief Executive
Officer
Email: info@galantas.com Website: www.galantas.com Telephone: +44 (0) 2882 241100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger
Telephone: +44(0)20 7383 5100
Panmure Gordon & Co (AIM Broker & Corporate Adviser)
Nick Lovering, Hugh Rich
Telephone: +44(0)20 7886 2500
(UK) DEALING NOTIFICATION FORM
FOR USE BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY AND
THEIR CLOSELY ASSOCIATED PERSONS
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Roland Phelps
------------------------------------ ---------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: President and Chief Executive
Officer and Director
------------------------------------ ---------------------------------
b) Initial notification/Amendment: Initial Notification
------------------------------------ ---------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
------------------------------------ ---------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
------------------------------------ ---------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Common Shares of nil
instrument type of instrument par value
Identification Code
ISIN: CA36315W2022
------------------------------------ ---------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at GBP0.175
per Unit, where each
Unit comprises one common
share and one warrant.
------------------------------------ ---------------------------------
c) Price(s) and volume 166,667 shares at GBP0.175
per share.
------------------------------------ ---------------------------------
d) Aggregated information 166,667 shares purchased
at GBP0.175 per share
------------------------------------ ---------------------------------
e) Date of the transaction 17(th) May 2021
------------------------------------ ---------------------------------
f) Place of the transaction Outside a trading venue
------------------------------------ ---------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Alan Buckley
-------------------------------------- -------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Chief Financial Officer
-------------------------------------- -------------------------------
b) Initial notification/Amendment: Initial Notification
-------------------------------------- -------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
-------------------------------------- -------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
-------------------------------------- -------------------------------
Details of the transaction(s): section to be repeated
4. for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Common Shares of nil
instrument type of instrument par value
Identification Code
ISIN: CA36315W2022
-------------------------------------- -------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at GBP0.175
per Unit, where each
Unit comprises one common
share and one warrant.
-------------------------------------- -------------------------------
c) Price(s) and volume 83,333 shares at GBP0.175
per share.
-------------------------------------- -------------------------------
d) Aggregated information 83,333 shares purchased
at GBP0.175 per share
-------------------------------------- -------------------------------
e) Date of the transaction 17(th) May 2021
-------------------------------------- -------------------------------
f) Place of the transaction Outside a trading venue
-------------------------------------- -------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: George Dugauy
--------------------------------------- ------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Corporate Secretary
--------------------------------------- ------------------------------
b) Initial notification/Amendment: Initial Notification
--------------------------------------- ------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
--------------------------------------- ------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
--------------------------------------- ------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Common Shares of nil
instrument type of instrument par value
Identification Code
ISIN: CA36315W2022
--------------------------------------- ------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at C$0.30 per
Unit, where each Unit
comprises one common
share and one warrant.
--------------------------------------- ------------------------------
c) Price(s) and volume 33,334 shares
--------------------------------------- ------------------------------
d) Aggregated information 33,334 shares purchased
at $0.30 per share
--------------------------------------- ------------------------------
e) Date of the transaction 17(th) May 2021
--------------------------------------- ------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------------- ------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Roland Phelps
------------------------------------ ---------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: President and Chief Executive
Officer and Director
------------------------------------ ---------------------------------
b) Initial notification/Amendment: Initial Notification
------------------------------------ ---------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
------------------------------------ ---------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
------------------------------------ ---------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Warrants over Common
instrument type of instrument Shares
Identification Code
ISIN: CA36315W2022
------------------------------------ ---------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at GBP0.175
per Unit, where each
Unit comprises one common
share and one warrant.
------------------------------------ ---------------------------------
c) Price(s) and volume 166,667 warrants with
an exercise price of
C$0.40
------------------------------------ ---------------------------------
d) Aggregated information 166,667 warrants with
an exercise price of
C$0.40
------------------------------------ ---------------------------------
e) Date of the transaction 17(th) May 2021
------------------------------------ ---------------------------------
f) Place of the transaction Outside a trading venue
------------------------------------ ---------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Alan Buckley
-------------------------------------- -------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Chief Financial Officer
-------------------------------------- -------------------------------
b) Initial notification/Amendment: Initial Notification
-------------------------------------- -------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
-------------------------------------- -------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
-------------------------------------- -------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Warrants over Common
instrument type of instrument Shares
Identification Code
ISIN: CA36315W2022
-------------------------------------- -------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at GBP0.175
per Unit, where each
Unit comprises one common
share and one warrant.
-------------------------------------- -------------------------------
c) Price(s) and volume 83,333 warrants with
an exercise price of
C$0.40
-------------------------------------- -------------------------------
d) Aggregated information 83,333 warrants with
an exercise price of
C$0.40
-------------------------------------- -------------------------------
e) Date of the transaction 17(th) May 2021
-------------------------------------- -------------------------------
f) Place of the transaction Outside a trading venue
-------------------------------------- -------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: George Dugauy
--------------------------------------- ------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Corporate Secretary
--------------------------------------- ------------------------------
b) Initial notification/Amendment: Initial Notification
--------------------------------------- ------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monito
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
--------------------------------------- ------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
--------------------------------------- ------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Warrants over Common
instrument type of instrument Shares
Identification Code
ISIN: CA36315W2022
--------------------------------------- ------------------------------
b) Nature of the transaction Private Placement for
a "Unit" at C$0.30 per
Unit, where each Unit
comprises one common
share and one warrant.
--------------------------------------- ------------------------------
c) Price(s) and volume 33,334 warrants with
an exercise price of
C$0.40
--------------------------------------- ------------------------------
d) Aggregated information 33,334 warrants with
an exercise price of
C$0.40
--------------------------------------- ------------------------------
e) Date of the transaction 17(th) May 2021
--------------------------------------- ------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------------- ------------------------------
1. Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Roland Phelps
----------------------------------- ----------------------------------
2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: President and Chief Executive
Officer and Director
----------------------------------- ----------------------------------
b) Initial notification/Amendment: Initial Notification
----------------------------------- ----------------------------------
3. Details of the issuer, emission allowance market
participant, auction platform, auctioneer or auction
monitor
-----------------------------------------------------------------------
a) Name: Galantas Gold Corporation
----------------------------------- ----------------------------------
b) LEI: LEI: 213800JKVPLLKO4KVB93
----------------------------------- ----------------------------------
Details of the transaction(s): section to be repeated
4. for (i) each type of instrument; (ii) each type
of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
-----------------------------------------------------------------------
a) Description of the financial Warrants over Common
instrument type of instrument Shares
Identification Code
ISIN: CA36315W2022
----------------------------------- ----------------------------------
b) Nature of the transaction In consideration for
extending the G&F Loan
and deferring interest,
G&F Phelps Ltd has received,
1,700,000 warrants exercisable
into one common share
----------------------------------- ----------------------------------
c) Price(s) and volume 1,700,000 warrants with
an exercise price of
C$0.33
----------------------------------- ----------------------------------
d) Aggregated information 1,700,000 warrants with
an exercise price of
C$0.33
----------------------------------- ----------------------------------
e) Date of the transaction 17(th) May 2021
----------------------------------- ----------------------------------
f) Place of the transaction Outside a trading venue
----------------------------------- ----------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDDLFFFELLBBB
(END) Dow Jones Newswires
May 18, 2021 02:00 ET (06:00 GMT)
Galantas Gold (LSE:GAL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Galantas Gold (LSE:GAL)
Historical Stock Chart
From Apr 2023 to Apr 2024