PP at 0.25Galantas Gold Corporation Announces Private Placement
7/14/2006
TORONTO, ONTARIO, Jul 14, 2006 (MARKET WIRE via COMTEX News Network) --
The board of Galantas Gold Corporation ("Galantas")(TSX VENTURE: GAL)(AIM: GAL) is pleased to announce a private placement pursuant to which Galantas shall issue up to 12,800,000 Units of Galantas at $0.25 per Unit (the "Offering"), with an over-allotment of up to an additional 1,200,000 Units at $0.25 per Unit (the "Over-Allotment Option"). The issue of up to 12,800,000 Units of Galantas includes up to 2,000,000 Units for subscribers specifically identified by Galantas (the "President's List"). Each Unit will consist of one common share and one common share purchase warrant of Galantas. Each share purchase warrant will entitle the purchaser to purchase one common share of Galantas at a price of $0.32 per share for a period of twenty-four months from the date of the closing of the private placement. The shares will carry a 4 month minimum hold period.
Under an engagement letter dated June 27, 2006, as amended, Union Securities Ltd. of Ontario, Canada ("Union"), agreed to act as agent for the private placement pursuant to which Union shall receive 8% in cash commission based on Units sold under the Offering and the Over-Allotment Option (excluding Units sold pursuant to the President's List) and 4% in cash for Units sold pursuant to the President's List payable at closing. In addition, Galantas will issue to Union, at closing, compensation options (the "Agent's Compensation Options") equal to 10% of all Units sold pursuant to the Offering and the Over-Allotment Option (excluding Units sold pursuant to the President's List) and 5% of all Units sold pursuant to the President's List. Each Agent's Compensation Option entitles the Agent to purchase one Unit of the Company at $0.25 per Unit at any time prior to the date that is 24 months from the Closing Date.
The private placement is subject to the completion of final documentation and the approval of the TSX Venture Exchange. It is anticipated that the date of the closing of the private placement will be on or about July 25, 2006. Galantas will use the gross proceeds of the private placement to expand exploration and development of the Omagh Gold Project in Northern Ireland. An application will be made to admit any new shares issued under the placing to trading on AIM on the same day that they become eligible for trading on the TSX Venture Exchange
This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.
The TSX Venture Exchange Inc. has neither approved nor disapproved the information herein contained.
Contacts:
Galantas Gold Corporation
Jack Gunter P.Eng
Executive Chairman