TIDMGAL
RNS Number : 6455P
Galantas Gold Corporation
13 February 2023
GALANTAS GOLD ENTERS INTO LOAN AGREEMENT
February 13, 2023, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
announces that it has entered into a loan agreement ("Loan
Agreement") for GBP347,000 (approximately C$562,930) (the "Loan")
with London-based family office Melquart Ltd. ("Melquart" or the
"Lender"). The Loan is to be used for the initial lease payment for
the Gairloch Project in Scotland (see Galantas' news release dated
January 26, 2023).
The Loan is payable 24 months from the date of the Loan
Agreement and will bear interest at an annual rate of 12% payable
upon repayment of the Loan.
As consideration for providing the Loan, Melquart will receive
upon closing of the Loan Agreement, 100,000 warrants of Galantas
(the "Bonus Warrants"), subject to acceptance by the TSX Venture
Exchange. Each Bonus Warrant will be exercisable into one common
share of Galantas for a period of 24 months from the Closing at an
exercise price equal to the closing price of the Company's common
shares on the TSX Venture Exchange on February 10, 2023.
The above terms are subject to TSX Venture Exchange approval
under the TSXV Policy 5.1 - Loans, Loan Bonuses, Finder's Fees and
Commissions.
Mario Stifano, CEO of Galantas, commented: "I want to thank
Melquart for their continued confidence in Galantas, and their
willingness to support us in our mission to unlock further value
for shareholders by expanding our exploration footprint to the
high-potential, Gairloch gold-bearing volcanogenic massive sulphide
district in Scotland, that has largely been underexplored."
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
consider, having consulted with their Nominated Adviser, Grant
Thornton UK LLP, that the terms of the Loan Agreement are fair and
reasonable insofar as shareholders are concerned.
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.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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 closing of the Loan, and 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.
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END
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