Galantas Gold Corporation announced a proposed private placement to finance full commercial production and increase high grade resource at Cavanacaw mine in Omagh, Northern Ireland.
PLACEMENT
The private placement consists of a minimum of 17 to 22 million units at C$0.30 (17p) per unit, where each unit comprises one common share and one warrant.
The minimum gross proceeds expected to be raised are C$5,100,000 (£2.9m), with maximum gross proceeds of CA$6,600,000 (£3.76m).
Each warrant will be exercisable into one additional share at an exercise price of C$0.40 for 24 months from the closing date of the placement.
There will be a four-month hold period on the trading of securities issued in connection with the offering.
INTERESTED PARTIES
The Canadian miner’s largest shareholder is investment management firm Melquart Ltd which is expected to subscribe for 2,000,000 units for CA$600,000 (£342,800).
Outgoing chief executive Roland Phelps is expected to subscribe for units for the equivalent of £250,000 (C$435,000).
Metals trader Ocean Partners UK Ltd will subscribe for a minimum of 1,666,667 units for a subscription of C$500,000 (£285,700).
The firm will also purchase any additional units up to a maximum of C$4,500,000 (£2.5m) required to reach the minimum gross proceeds from the private placement of C$5,100,000 (£2.9m) including Melquart’s subscription.
Galantas will carry 75% of certain legal costs incurred by Ocean Partners’ legal counsel in the preparation of suitable documentation.
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