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Galantas Gold Announces Proposed Private Placement and Increase to Loan Facility
TORONTO, June 26, 2020 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the “Company” or “Galantas”) (TSXV & AIM : Symbol GAL), the AIM and TSX Venture Exchange (
About this update from Galantas Gold Corporation
[{"type":"text","content":" TORONTO, June 26, 2020 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the “Company” or “Galantas”) (TSXV & AIM : Symbol GAL), the AIM and TSX Venture Exchange (“TSXV”) quoted gold mine developer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, announces a proposed private placement of common shares (the “Private Placement”) and amendments to the terms of its loan facility with Ocean Partners UK Ltd. (“Ocean Loan”). The net proceeds to be raised by the Private Placement are intended to be used to support mine operations and provide general working capital for the Company. The Private Placement is expected to include funds raised in both UK and Canadian currency and is for a maximum of 2,636,355 shares, at an issue price of CAD$0.225 (UK£0.1328) per share for maximum gross proceeds of CAD$593,180 (UK£350,000). Provisional indications have been received for CAD$457,469 (UK£270,000). A four month plus one day hold period will apply to the shares and the shares will rank pari passu with the existing shares in issue of the Company. The Private Placement will be brokered and insiders of the Company are expected to participate in the Private Placement. A further announcement will be made in due course detailing the results of the Private Placement, which is subject to TSXV and regulatory approval. Galantas has also agreed on terms, subject to final documentation, of an increase in the outstanding Ocean Loan with Ocean Partners UK Ltd. (“Ocean”). The amount of the Ocean Loan will increase by USD$200,000 to a total of USD$1.8 million. The interest rate applicable on the Ocean Loan will be increased from USD 12 month LIBOR + 8.75% to USD 12 month LIBOR + 9.9% and the maturity date will be extended from 30 December 2020 to 31 December 2021. Interest may be rolled into the Ocean Loan until 31 December 2020, at the Company’s option. The existing second charge debenture over mine assets will remain in place. Galantas entered into the Ocean Loan through a concentrate pre-payment agreement/ loan agreement signed by its subsidiary Flintridge Resources Ltd. and Ocean on April 11, 2018. As consideration for amending the terms of the Ocean Loan, Ocean will receive, upon closing of the Ocean Loan agreements, 1,700,000 bonus warrants of Galantas (“Bonus Warrants”) subject to the rules of TSXV Policy 5.1 – Loans, Loan Bonus...