Galantas Closes Private Placement
Galantas Closes Private Placement
TORONTO, July 20, 2020 -- Galantas Gold Corporation (TSXV & AIM: Symbol GAL ) (the “Company”), the AIM and TSXV
quoted gold producer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, announces that the proposed
private placement (the “Private Placement”) for 2,833,132 common shares (“Common Shares”) for gross proceeds of
CAD$637,454 (GBP£376,240), previously announced on June 26, 2020 and July 03, 2020, has now closed and was fully
subscribed.
The Private Placement has received conditional approval of the TSX Venture Exchange and closed on July 17, 2020 for
2,833,132 Common Shares for receipt of CAD$637,454 (GBP£376,240), “The Closing”). The net proceeds to be raised by the
Private Placement are intended to be used to support mine operations and provide general working capital for the Company.
The Private Placement included a subscription by LF Miton UK Smaller Companies Fund, which has subscribed for 527,108
Common Shares in the Private Placement and is managed by Premier Fund Managers Ltd (“Premier Miton”). Post-closing,
this fund holds 3,222,330 shares, equivalent to 9.17% of the Company’s Common Shares. The total number of shares
controlled by Premier Miton post completion of the Private Placement is 4,884,243, representing 13.89% of the Company’s
enlarged issued and outstanding Common Shares.
The Private Placement also included a subscription from Melquart Limited (“Melquart”), for 1,506,024 Common Shares, which
gives rise to an enlarged holding of 9,262,595 Common Shares post completion of the Private Placement, or 26.35% of the
Company’s enlarged issued and outstanding Common Shares.
A four month hold period (the “Hold Period”) will apply to the Common Shares of the Private Placement. The Hold Period will
expire on November 18, 2020. The shares issued pursuant to the Private Placement will rank pari passu with the existing
Common Shares in issue of the Company.
Commission payable to brokers in Canada and the United Kingdom in relation to the Private Placement totals CAD$33,673
(GBP£19,874). The broker who assisted with the Private Placement in Canada is Stephen Avenue Securities Inc. and the
broker in the United Kingdom is Whitman Howard Limited.
Premier Miton and Melquart are deemed to be related parties of the Company by virtue of being Substantial Shareholders of
the Company (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 Private Placement are fair and
reasonable insofar as shareholders are concerned. As related parties of the Company have subscribed under the Private
Placement, the transaction constitutes a related party transaction pursuant to the rules of Multilateral Instrument 61-101. The
Company has relied on exemptions from formal valuation and minority approval requirements by virtue of the Private Placement
being valued at less than 25% of the Company’s market capitalization.
The Company has applied for admission of the Common Shares in connection with the Private Placement to trading on the
AIM market of the London Stock Exchange (“Admission”) with Admission expected to occur on or around July 22, 2020.
Following Admission and Closing of the Private Placement, Galantas Gold Corporation’s Issued and Outstanding Common
Shares total 35,154,604.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
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.
Enquiries : Galantas Gold Corporation
Roland Phelps C.Eng – President & CEO
Email: [email protected] Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com
Grant Thornton UK LLP (AIM Nominated Advisor)
Philip Secrett , Harrison Clarke: Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering : Telephone: +44(0)20 7659 1234