Galantas Gold enters into loan agreement
TORONTO, July 26 11, 2022 (GLOBE NEWSWIRE) — Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) announces that it has entered into a new loan agreement (“Loan Agreement”) ) for US$530,000 (the “Loan”) with Ocean Partners UK Ltd. (“Ocean” or the “Lender”). The loan is to be used to finance the development of underground mining operations at the Omagh Gold Project in Northern Ireland and working capital.
The loan is repayable six months from the closing date of the loan issuance (the “closing”) and will bear interest at an annual rate of 12% compounded monthly and repayable in full at the maturity of the loan.
In consideration for making the Loan, Ocean will receive, at closing, 125,000 Galantas warrants (the “Premium Warrants”), subject to acceptance by the TSX Venture Exchange.
At closing, each Bonus Warrant will be exercisable into one common share of Galantas for a period of 12 months. The exercise price will be determined by reference to the closing price of the common shares of the Company on the TSX Venture Exchange on July 26, 2022.
As part of the loan agreement, Galantas will also pay Ocean a commitment fee of $10,000 which will be deducted from the initial loan proceeds. Galantas may, at its option, extend the loan for an additional six months by paying Ocean an additional structuring fee of $20,000.
The above terms are subject to TSX Venture Exchange approval under TSX Venture Exchange Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions.
The Company also confirms that it has exercised its option to extend the US$1.06 million loan entered into with Ocean on January 31, 2022 (see announcement of January 25, 2022) for a further period of six months, until January 31, 2023, by paying Ocean an additional structuring fee of $40,000 in accordance with the terms of this loan.
Mario Stifano, CEO of Galantas, said, “I would like to thank Ocean Partners for their continued support of Galantas as we enter the next phase of growth as a gold producer while continuing to explore to expand our resources to high content.
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.
The information in this announcement is deemed to be inside information as set out in the retained EU law version of the Market Abuse Regulation (EU) No 596/2014 (the “UK MAR”) which forms part of UK law under the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company’s obligations under section 17 of the UK MAR. As of the publication of this announcement, this privileged information is henceforth considered to be in the public domain.
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
Email: [email protected]
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secret, Harrison Clarke, George Grainger
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
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including the closing of the loan agreement, the results of exploration programs and mining development of the Omagh gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas deems appropriate in the circumstances. . Many factors could cause the actual results, performance or achievements of Galantas to differ materially from those expressed or implied by the forward-looking statements or strategy, including: the volatility of the price of gold; differences between actual and estimated production, actual and estimated metallurgical recoveries and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; the loss or availability of key employees; additional financing needs; uncertainties regarding planning and other permitting issues; and defective title to mining claims or property. These and other factors that could affect Galantas’ forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of Galantas’ Financial Statements and elsewhere in documents filed from time to time. with the Canadian Provincial Securities Administrators and other regulatory authorities. These factors should be carefully considered and persons reading this press release should not place undue reliance on any forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise the forward-looking statements contained in this press release, except as required by law.