Galantas Gold completes loan deal for $530,000
TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) — Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) Announces Closing of US$530,000 Loan Agreement (“Loan Agreement”) (the “Loan”) with Ocean Partners UK Ltd (“Ocean” or the “Lender”).
Terms of the loan agreement, as previously announced on July 26, 2022:
- The Loan matures on January 31, 2023 (the “Maturity Date”).
- The loan will bear interest at an annual rate of 12% compounded monthly and repayable in full on the due date.
- A $10,000 commitment fee was paid to Ocean.
- 125,000 warrants (the “Bonus Warrants”) have been granted to Ocean, exercisable for a period of 12 months at an exercise price of C$0.48. The Bonus Warrants are subject to a hold period under applicable securities laws and TSX Venture Exchange rules, expiring on July 25, 2023.
- An extension fee of $20,000 will be paid to Ocean if the Company chooses to extend the loan for an additional six months from the maturity date.
The loan proceeds will be used to finance the development of underground mining operations at the Omagh Gold Project in Northern Ireland and working capital.
Ocean Partners is a person closely related to Brent Omland, director of Galantas (within the meaning of the European regulation on market abuse). Mr. Omland is the Chief Financial Officer of Ocean Partners and is an Ocean Partners nominee to the Galantas board of directors, holds a minority stake and is a director of the parent entity of Ocean Partners.
The notification below, made pursuant to Regulation 19(3) of the Market Abuse Regulations, which forms part of UK law under the Withdrawal from the European Union Act 2018, further provides ample details.
Neither the 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.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that trades on the TSX Venture Exchange and the AIM market of the London Stock Exchange, both under the symbol GAL. It also trades on the OTCQX exchange under the symbol GALKF. The Company’s strategy is to create shareholder value by exploiting and developing the gold production and resources of the Omagh Project in Northern Ireland.
Galantas Gold Corporation
Mario Stifano: Chairman and CEO
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger, Samuel Littler
Telephone: +44(0)20 7383 5100
Panmure Gordon & Co (AIM Joint Broker & Corporate Adviser)
Hugh Rich, John Prior
Telephone: +44(0)20 7886 2500
SP Angel Corporate Finance LLP (AIM Joint Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (sales and brokerage)
Telephone: +44(0)20 3470 0470
(UK) TRADING NOTICE FORM
FOR THE USE OF PERSONS EXERCISING THE RESPONSIBILITY OF MANAGEMENT AND THEIR PERSONS CLOSELY RELATED
|1.||Contact details of the person discharging managerial responsibilities/person closely associated|
|a)||Last name:||Ocean Partners UK Ltd|
|2.||Reason for notification|
|a)||Function/status:||Ocean Partners UK Ltd is a person closely associated with Brent Omland, director of Galantas|
|b)||Initial Notification/Amendment:||Initial notification|
|3.||Contact details of issuer, emission allowance market participant, auction platform, auctioneer or auction monitor|
|a)||Last name:||Galantas Gold Corporation|
|4.||Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each location where transactions were conducted|
|a)||Description of the financial instrument type of instrument||Stock warrants|
|Identification code||ISIN: CA36315W3012|
|b)||Nature of the operation||Granting of mandates|
|vs)||Price(s) and volume||Price||Volume|
|D)||Aggregated information||N/A single transaction|
|e)||Transaction date||July 26, 2022|
|F)||Place of transaction||Outside a trading platform|