NEWSFri July 28, 2006
Successful Completion Of Fundraising
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Oversubscribed Private Placing raises $3.5m to expand exploration and development
The Directors of Galantas Gold Corporation (“Galantas”), a company with a gold mine in development near Omagh, County Tyrone, Northern Ireland, are pleased to announce the closing of a private placement (the “Offering”) for gross proceeds of C$3,500,000. Galantas will use the net proceeds of the private placement to expand exploration and development of the Omagh Gold Project.
Pursuant to this offering, Galantas issued 14,000,000 units of Galantas (each a “Unit”) at the price of C$0.25 per Unit (including an over-allotment of 1,200,000 Units (the “Over-Allotment”) and 2,000,000 Units for subscribers specifically identified by Galantas (the “President’s List”)). Each Unit consists of one common share of Galantas (each a “Common Share”) and one common share purchase warrant of Galantas (each a “Warrant”). Each Warrant entitles the purchaser to purchase one Common Share at a price of C$0.32 per share at any time until July 26, 2008. The shares will carry a 4-month minimum hold period. 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.
Union Securities Ltd., acting as agent (the “Agent”) was paid a cash fee of C$260,000.00 representing 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. In addition, Galantas issued to the Agent 1,300,000 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 Galantas at C$0.25 per Unit at any time prior to July 26, 2008.
Galantas President and CEO, Roland Phelps, says: “We are delighted to have successfully raised the new monies. They will enable us to accelerate parts of our development program, including diamond drilling, aimed at expanding the Galantas gold operation. We are making good progress with site construction and fitting out the mill.”
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