Business
Galantas Gold Closes GBP £1,000,000 Private Placement
TORONTO, Aug. 22, 2019 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the “Company”), the AIM and TSXV quoted gold producer and explorer with a 100% interest in
About this update from Galantas Gold Corporation
[{"type":"text","content":" TORONTO, Aug. 22, 2019 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the “Company”), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, announces that the proposed private placement (the “Private Placement”) for 23,529,412 common shares (“Common Shares”) for gross proceeds of GBP£1,000,000 (CAD$1,600,000), previously announced on August 5, 2019, has now closed and was fully subscribed. The Private Placement has received conditional approval of the TSX Venture Exchange and closed on August 21, 2019 for 23,529,412 Common Shares for receipt of CDN$1,600,000 (GBP£1,000,000) (“The Closing”). The net proceeds to be raised by the Private Placement are intended to be used to implement recently identified optimisation initiatives at the Omagh gold mine, including increased mechanisation and improved underground infrastructure, as well as for general working capital of the Company. The Private Placement included a subscription by Miton Asset Management Limited (“Miton”), a UK-based investment institution, in respect of the Miton UK Microcap Trust, which has subscribed for 3,764,706 Common Shares in the Private Placement. The total number of shares controlled by Miton post completion of the Private Placement is 53,764,706, representing approximately 16.63% of the Company’s enlarged issued and outstanding Common Shares. The Private Placement also included a subscription from Melquart Limited (“Melquart”), for 15,341,174 Common Shares, which gives rise to an enlarged holding of 77,565,719 Common Shares post completion of the Private Placement, or approximately 24.00% of the Company’s enlarged issued and outstanding Common Shares. A four month hold period (the “Hold Period”) will apply to the Common Shares of the Private Placement. The Hold Period will expire on December 22, 2019. The shares issued pursuant to the Private Placement will rank pari passu with the existing Common Shares in issue of the Company. Commission payable to Whitman Howard Ltd. for acting as the broker in relation to the Private Placement totals GBP £49,500 (CAD$ 79,000). Miton and Melquart are deemed to be related parties of the Company by virtue of being Substantial Shareholders of the Company (as defined in the AIM Rules for Companies). As a consequence, the Directors of the Company consider, ha...