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Galantas Gold Enters Into Loan Agreement
TORONTO, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) announces that it has entere
About this update from Galantas Gold Corporation
[{"type":"text","content":" TORONTO, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) announces that it has entered into a loan agreement (“Loan Agreement”) for £347,000 (approximately C$562,930) (the “Loan”) with London-based family office Melquart Ltd. (“Melquart” or the “Lender”). The Loan is to be used for the initial lease payment for the Gairloch Project in Scotland (see Galantas’ news release dated January 26, 2023). The Loan is payable 24 months from the date of the Loan Agreement and will bear interest at an annual rate of 12% payable upon repayment of the Loan. As consideration for providing the Loan, Melquart will receive upon closing of the Loan Agreement, 100,000 warrants of Galantas (the “Bonus Warrants”), subject to acceptance by the TSX Venture Exchange. Each Bonus Warrant will be exercisable into one common share of Galantas for a period of 24 months from the Closing at an exercise price equal to the closing price of the Company’s common shares on the TSX Venture Exchange on February 10, 2023. The above terms are subject to TSX Venture Exchange approval under the TSXV Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions. Mario Stifano, CEO of Galantas, commented: “I want to thank Melquart for their continued confidence in Galantas, and their willingness to support us in our mission to unlock further value for shareholders by expanding our exploration footprint to the high-potential, Gairloch gold-bearing volcanogenic massive sulphide district in Scotland, that has largely been underexplored.” 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 consider, having consulted with their Nominated Adviser, Grant Thornton UK LLP, that the terms of the Loan Agreement are fair and reasonable insofar as shareholders are concerned. 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. The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the \...