Galantas Gold Corp V.GAL

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GLOBENEWSWIRE

Galantas Receives Agreements for Maximum Amount in Private Placement

 

 

11/30/2018 2:00:00 AM
 

TORONTO, Nov. 30, 2018 (GLOBE NEWSWIRE) --  Galantas Gold Corporation (the “Company” or “Galantas”), the AIM and TSX Venture Exchange (“TSXV”) quoted gold producer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, is pleased to announce that it has received Subscription Agreements (“Subscription Agreements”) regarding the proposed private placement of common shares (the “Private Placement”) previously announced on November 19, 2018.

Subscription Agreements have been received for the maximum amount of 80,000,000 common shares of no par value in the Company (“Common Shares”) for the gross amount of UK£4 million (CAD$6,879,080).

Roland Phelps, President & CEO, Galantas Gold Corporation, as previously announced intends to, subject to TSXV and shareholder approvals, exchange shares for debt owed to him personally, in the amount of £500,000 for 10,000,000 Common Shares, on the same terms as the Private Placement (the "Arrangement").

Melquart Ltd. (“Melquart”) has scaled back its anticipated subscription amount to accommodate other subscribers. Melquart, who currently holds 19.18% of the Company’s Common Shares, has subscribed for UK£1.1 million for 22,000,000 shares. On the issuance of Common Shares in the Private Placement and Arrangement, Melquart’s holding is anticipated to become approximately 20.76% of the Company’s total Common Shares.

Miton Asset Management, through three of its funds, is subscribing for 50,000,000 Common Shares at an aggregate subscription price of £2.5 million, which equates to approximately 16.68% of the Company’s total Common Shares post completion of the Private Placement and Arrangement.

Risn Magee, a Director of the Company, is subscribing for 500,000 Common Shares. Ms. Magee does not currently hold any Common Shares in the Company and post completion of the Private Placement and Arrangement will therefore have an interest in 500,000 Common Shares or 0.17% of the Company's total Common Shares.

Ms. Magee and Mr. Phelps are deemed to be related parties of the Company by virtue of being Directors of the Company and 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 (excluding Ms. Magee and Mr. Phelps) consider, having consulted with their nominated adviser, Grant Thornton UK LLP, that the terms of the Private Placement and the Arrangement are fair and reasonable insofar as shareholders are concerned.

The Private Placement and Arrangement are both subject to TSXV and regulatory approvals.

A further announcement will be made in due course with final details of the Private Placement and Arrangement.

The underground gold mine at Omagh has commenced limited production of gold concentrate, from feed produced in development of the Kearney vein and Galantas announced the first delivery of gold and silver concentrate on November 5, 2018. The processing plant uses a non-toxic flotation process to produce concentrates, without the use of cyanide or mercury. It satisfies strict environmental monitoring criteria set by the Northern Ireland regulatory authorities and has a zero lost time accident record since the start of underground development.

Galantas is pleased to announce that it has received the award of Green status in the 2017 NI Environmental Benchmarking Survey, Business in the Community, Northern Ireland.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Galantas Gold Corporation’s Issued and Outstanding Shares total 209,686,805.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Enquiries: Galantas Gold Corporation

L. Jack Gunter P.Eng – Chairman, Roland Phelps C.Eng – President & CEO

Email: [e-mail] Telephone: (UK) [phone]

Website: www.galantas.com

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett, Harrison Clarke, Richard Tonthat: Telephone: [phone]

Whitman Howard Ltd (Broker & Corporate Adviser)

Nick Lovering, Grant Barker: Telephone: [phone]

 

 

Galantas Gold Corporation