TORONTO, ONTARIO--(Marketwired - June 10, 2016) - Galantas Gold Corporation (the "Company") (TSX
VENTURE:GAL)(AIM:GAL), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland's Omagh gold
mine, announces the closing of an over-subscribed private placement that was announced 11th May 2016.
Placing priority was given to existing shareholders, with 18,619,841 common shares issued, at a price of CDN$0.07875 per
common share (the "Placing") for a total of CDN$1,466,312. A four month hold period will apply, which expires on
10th October 2016. The shares issued pursuant to the Placing will rank pari passu with the existing common shares
in issue of the Company.
The majority of the placement was taken up by Mr. Ross Beaty, who acquired 12,825,397 common shares. As a consequence of the
Placing, Mr. Beaty has an interest in 28,825,397 Common Shares or 20.9% of the Company's issued common shares and continues to
have an interest in 16,000,000 warrants.
In addition to the private placement, Roland Phelps, President & CEO, Galantas Gold Corporation, entered into a shares for
debt exchange on the same terms as the placement, including the four month hold period, expiring 11th October 2016.
Mr. Phelps exchanged debt accruing to him, as of 31st March 2016, for CDN$935,852 for 11,883,835 common shares (the
"Debt Exchange"). Shareholder consent was received for the Debt Exchange by means of a written resolution, with a majority of
disinterested shareholder votes consenting.
Following the Debt Exchange, Mr. Phelps holds 33,356,750 common shares, representing 24.2% of the enlarged number of common
shares in issue.
Mr. Phelps is deemed to be a related party of Galantas by virtue of being a Director of the Company (as defined in the AIM
Rules for Companies). As a consequence, the Directors of the Company (other than Mr. Phelps) consider, having consulted with
their nominated adviser, Grant Thornton UK LLP, that the terms of the Debt Exchange are fair and reasonable insofar as
shareholders are concerned.
Mr. Beaty is deemed to be a related party of Galantas by virtue of being a Substantial Shareholder of the Company (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 Placing to Mr. Beaty are fair and reasonable insofar as shareholders are
concerned.
The Company has applied for admission of the common shares in connection with the Placing and the Debt Exchange to trading on
the AIM market of the London Stock Exchange ("Admission") with Admission expected to occur on or around 16th June
2016.
Roland Phelps, President & CEO, Galantas Gold Corporation, said, "I am delighted with the support demonstrated by shareholders
and welcome the increased participation by Ross Beaty. The funding allows us to continue to invest in the exciting Omagh gold
project."
The net proceeds raised by the Placing are intended to be used for working capital purposes, to finance the Company's legal
commitments in regard to its underground planning consent, finance work on conditions precedent and progress exploration
activities.
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.
Galantas Gold Corporation's Issued and Outstanding Shares total 137,800,830 as of 10th June 2016.