TIDMGAL
RNS Number : 6869T
Galantas Gold Corporation
21 March 2023
GALANTAS GOLD ANNOUNCES UPSIZE TO NON-BROKERED PRIVATE PLACEMENT
FINANCING AND TERMS OF SHARES-FOR-DEBT TRANSACTION
Not for distribution to United States news wire services or for
dissemination in the
United States
March 21, 2023, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the " Company")
is pleased to announce that, in order to accommodate additional
interest in its previously announced non-brokered private placement
(as amended, the "Offering"), the Offering will be upsized to up to
7,638,888 units of the Company ("Units") at a price of C$0.36 per
Unit for aggregate gross proceeds of up to approximately C$2.75
million.
Each Unit will consist of one common share of the Company (a
"Common Share") and one Common Share purchase warrant (a
"Warrant"), with each Warrant entitling the holder thereof to
purchase one Common Share at a price of C$0.55 per share for a
period of 60 months from the closing date.
The net proceeds of the Offering are expected to be used for
exploration, including follow-up drilling targeting the high-grade
dilation zones to depth at the Joshua Vein and the recently
identified Kerr Vein target, development at Galantas' gold project
in Northern Ireland, as well as exploration at the recently
announced gold-rich volcanogenic massive sulphide project in
Scotland, and for general working capital purposes.
Certain persons may be eligible to receive finder's fees,
payable in cash, representing up to 7% of the proceeds generated by
such finders, in connection with the Offering. In addition, the
Company may also issue to certain finders non-transferable
compensation warrants (the "Finder's Warrants") to purchase that
number of Common Shares as is equal to 7% of the number of Units
sold to subscribers identified by such finders pursuant to the
Offering, with each Finder's Warrant entitling the holder thereof
to purchase one Common Share at a price of C$0.36 per share for a
period of 24 months from the closing date.
In addition to the foregoing, the Company has received strong
support from stakeholders and also announces the terms of a
proposed shares-for-debt transaction (the "Debt Settlement") with
several arm's length creditors of the Company to settle
approximately C$299,020 of indebtedness through the issuance of an
aggregate of 830,611 Units at a deemed price of C$0.36 per Unit on
the same terms as the Units issued under the Offering.
Closing of the Offering and the Debt Settlement is expected to
occur on or about March 27, 2023, and remain subject to certain
closing conditions including, but not limited to, the receipt of
all necessary approvals, including the conditional acceptance of
the TSX Venture Exchange. The securities issued pursuant to the
Offering and the Debt Settlement will be subject to a four-month
hold period under applicable Canadian securities laws.
The securities offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, or any state securities law, and may not be offered or
sold in the United States absent registration or an exemption from
such registration requirements. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any state in which
such offer, solicitation or sale would be unlawful.
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 news 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 news 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, but
not limited to, the terms of the Offering and the Debt Settlement,
the use of proceeds of the Offering, the timing and ability of the
Company to close the Offering and the Debt Settlement, the timing
and ability of the Company to receive necessary regulatory
approvals, and the plans, operations and prospects of the Company.
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 news 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 news release, except as required by law.
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END
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