TIDMGAL
RNS Number : 1416J
Galantas Gold Corporation
09 December 2022
GALANTAS GOLD ENTERS INTO TRADING AGREEMENT WITH OCEAN
PARTNERS
December 9, 2022, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
is pleased to announce that it has entered into an agreement (the
"Trading Agreement") with Ocean Partners UK Ltd. ("Ocean"), whereby
Ocean has sold on behalf of Galantas call options on 6,000 ounces
of gold at 500 ounces per month from February 2024 to January 2025
at a strike price of US$1,775 per ounce for proceeds of US$804,000
to Galantas (an option premium of US$134 per gold ounce).
Proceeds from the sale will be used to fund development of the
underground mining operations at the Omagh Gold Project in Northern
Ireland and working capital.
Mario Stifano, CEO of Galantas, commented: "We are grateful for
the long-standing support of our shareholders who see the
district-scale and high-grade potential of the Omagh Gold Project,
and particularly Ocean for allowing Galantas to utilize its trading
platform and credit lines that are not typically available to
junior producers. The sale of call options represents approximately
1% of our resource base, resulting in a strengthened balance sheet
as we work towards production ramp-up in 2023."
Terms of the Trading Agreement
If the gold price during February 2024 to January 2025 is at or
below US$1,775 per ounce, Galantas will receive the price of gold
at the time for the sale of its gold produced. If the gold price is
above US$1,775 per ounce, Galantas will receive US$1,775 per ounce
in revenue for the sale of its gold. Ocean has agreed to maintain
all margin requirements through its existing credit lines on behalf
of Galantas and provide additional financial support.
Pursuant to the Trading Agreement, and in return for Ocean
facilitating the call option sale and agreeing to maintain all
margin requirements on Galantas' behalf, which Galantas has
determined has a value of at least CAD$150,000, Galantas has agreed
to grant 500,000 warrants (the "Warrants") to Ocean at an exercise
price of CAD$0.55 expiring on January 31, 2025. The Warrants are
subject to a hold period under applicable securities laws and the
rules of the TSX Venture Exchange.
The Trading Agreement and the issuance of Warrants to Ocean
shall be subject to the prior approval of the TSX Venture Exchange.
There is no assurance that TSX Venture Exchange approval will be
obtained.
Ocean is a person closely associated with Brent Omland, a
Director of Galantas (within the meaning of the EU Market Abuse
Regulation). Mr. Omland is Chief Financial Officer of Ocean and is
a nominee of Ocean on the board of Galantas and holds a minority
stake in, and is a director of, Ocean's parent entity.
No finder's fees will be paid in connection with the Trading
Agreement.
The notification set out below, made pursuant to Article 19(3)
of the Market Abuse Regulation which is part of UK law by virtue of
the European Union (withdrawal) Act 2018, provides further
details.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that
trades on the TSX Venture Exchange and the London Stock Exchange
AIM market, both under the symbol GAL. It also trades on the OTCQX
Exchange under the symbol GALKF. The Company's strategy is to
create shareholder value by operating and expanding gold production
and resources at the Omagh Project in Northern Ireland.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger, Samuel
Littler
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Broking)
Telephone: +44(0)20 3470 0470
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws,
including the results of exploration programs, and mine development
at the Omagh Gold Project. Forward-looking statements are based on
estimates and assumptions made by Galantas in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that
Galantas believes are appropriate in the circumstances. Many
factors could cause Galantas' actual results, the performance or
achievements to differ materially from those expressed or implied
by the forward looking statements or strategy, including: gold
price volatility; discrepancies between actual and estimated
production, actual and estimated metallurgical recoveries and
throughputs; mining operational risk, geological uncertainties;
regulatory restrictions, including environmental regulatory
restrictions and liability; risks of sovereign involvement;
speculative nature of gold exploration; dilution; competition; loss
of or availability of key employees; additional funding
requirements; uncertainties regarding planning and other permitting
issues; and defective title to mineral claims or property. These
factors and others that could affect Galantas' forward-looking
statements are discussed in greater detail in the section entitled
"Risk Factors" in Galantas' Management Discussion & Analysis of
the financial statements of Galantas and elsewhere in documents
filed from time to time with the Canadian provincial securities
regulators and other regulatory authorities. These factors should
be considered carefully, and persons reviewing this press release
should not place undue reliance on forward-looking statements.
Galantas has no intention and undertakes no obligation to update or
revise any forward-looking statements in this press release, except
as required by law.
(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: Ocean Partners UK Ltd
----------------------------------- ----------------------------------
Reason for the notification
2.
-----------------------------------------------------------------------
a) Position/status: Ocean Partners UK Ltd
is a person closely associated
with Brent Omland, a Director
of Galantas
----------------------------------- ----------------------------------
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 Share purchase warrants
instrument type of instrument
Identification Code ISIN: CA36315W3012
----------------------------------- ----------------------------------
b) Nature of the transaction Grant of warrants
----------------------------------- ----------------------------------
c) Price(s) and volume Price Volume
CAD$0.55 500,000
----------------------------------- ----------------------------------
d) Aggregated information N/A single transaction
----------------------------------- ----------------------------------
e) Date of the transaction December 8, 2022
----------------------------------- ----------------------------------
f) Place of the transaction Outside of a trading venue
----------------------------------- ----------------------------------
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END
AGRUPGUPPUPPPGR
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