Galantas Gold Corporation said it had signed a further loan agreement for US$530,000 and extended its current £1.06 million loan with Ocean Partners UK Ltd for the Cavanacaw mine in Omagh, Northern Ireland.
USES
The Canadian company said it would use the funds to development underground mining operations and for working capital.
Ocean Partners offers trading services for miners, smelters, refiners and metal consumers around the world.
TERMS
Galantas added that the loan was repayable six months from the closing date of issue and would have an annual interest rate of 12% compounded monthly and repayable in full on maturity of the loan.
In return, Ocean will receive 125,000 warrants of Galantas, exercisable into one common share of Galantas for a period of 12 months.
Galantas will also pay Ocean a commitment fee of US$10,000 which will be deducted from the initial proceeds of the loan.
Galantas may, at its option extend the loan for a further six months by paying Ocean an additional structuring fee of US$20,000.
EXISTING LOAN EXTENSION
The company added it had also extended for a further six months the US$1.06 million loan from Ocean dated 31 January 2022 to 31 January 2023.
Galantas paid Ocean an additional structuring fee of US$40,000 in accordance with the terms of the loan.