Galantas GOLD Announces Upsize to Non-Brokered Private Placement Financing and Terms of Shares-FOR-Debt Transaction
GALANTAS GOLD ANNOUNCES UPSIZE TO NON-BROKERED PRIVATE PLACEMENT
FINANCING AND TERMS OF SHARES-FOR-DEBT TRANSACTION
Not for distribution to United States news wire services or for dissemination in the
United States
March 20, 2023, TORONTO, CANADA – Galantas Gold Corporation (TSX -V & AIM: GAL; OTCQX:
GALKF) ("Galantas" or the "Company") is pleased to announce that, in order to accommodate additional
interest in its previously announced non-brokered private placement (as amended, the "Offering"), the
Offering will be upsized to up to 7,638,888 units of the Company ("Units") at a price of C$0.36 per Unit for
aggregate gross proceeds of up to approximately C$2.75 million.
Each Unit will consist of one common share of the Company (a "Common Share") and one Common
Share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to purchase one
Common Share at a price of C$0.55 per share for a period of 60 months from the closing date.
The net proceeds of the Offering are expected to be used for exploration , including follow-up drilling
targeting the high -grade dilation zo nes to depth at the Joshua Vein and the recently identified Kerr
Vein target, development at Galantas' gold project in Northern Ireland , as well as exploration at the
recently announced gold -rich volcanogenic massive sulphide project in Scotland, and for general
working capital purposes.
Certain persons may be eligible to receive finder's fees, payable in cash, representing up to 7% of the
proceeds generated by such finders, in connection with the Offering. In addition, the Company may
also issue to certain finders non-transferable compensation warrants (the "Finder's Warrants") to
purchase that number of Common Shares as is equal to 7% of the number of Units sold to subscribers
identified by such finders pursuant to the Offering, with each Finder's Warrant entitl ing the holder
thereof to purchase one Common Share at a price of C$0.36 per share for a period of 24 months from
the closing date.
In addition to the foregoing, the Company has received strong support from stakeholders and also
announces the terms of a proposed shares-for-debt transaction (the "Debt Settlement") with several
arm's length creditors of the Company to settle approximately C$299,020 of indebtedness through the
issuance of an aggregate of 830,611 Units at a deemed price of C$0.36 per Unit on the same terms
as the Units issued under the Offering.
Closing of the Offering and the Debt Settlement is expected to occur on or about March 27, 2023, and
remain subject to certain closing conditions including, but not limited to, the receipt of all necessary
approvals, including the conditional acceptance of the TSX Venture Exchange. The securities issued
pursuant to the Offering and the Debt Settlement will be subject to a four -month hold period under
applicable Canadian securities laws.
The securities offered have not been, nor will they be, registered under the United States Securities
Act of 1933, as amended, or any state securities law, and may not be offered or sold in the United
States absent registration or an exemption from such registration requirements. This news release
shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or sale would be unlawful.
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 news
release.
The information contained within this announcement is deemed to constitute inside information as
stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's obligations under Article 17 of the UK
MAR. Upon the publication of this announcement, this inside information is now 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 London Stock Exchange AIM market, 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 operating and expanding gold production and resources at the Omagh Project in Northern Ireland.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: [email protected]
Website: www.galantas.com
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
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Broking)
Telephone: +44(0)20 3470 0470
Forward-Looking Statements
This news 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, but not
limited to, the terms of the Offering and the Debt Settlement, the use of proceeds of the Offering, the
timing and ability of the Company to close the Offering and the Debt Settlement, the timing and ability
of the Company to receive necessary regulatory approvals, and the plans, operations and prospects
of the Company. 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 believes are appropriate in the
circumstances. Many factors could cause Galantas' actual results, the performance or achievements
to differ materially from those expressed or implied by the forward looking statements or strategy,
including: gold price volatility; discrepancies between a ctual 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; loss of or availability of key
employees; additional funding requirements; uncertainties regarding planning and other permitting
issues; and defective title to mineral claims or property. These factors and others that could affect
Galantas' forward -looking statements are discussed in greater detail in the section entitled "Risk
Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and
elsewhere in documents filed from time to time with the Canadian provincial securities regulators and
other regulatory authorities. These factors should be considered carefully, and persons reviewing this
news release should not place undue reliance on forward -looking statements. Galantas has no
intention and undertakes no obligation to update or revise any forward-looking statements in this news
release, except as required by law.