Galantas Gold Corporation GALANTAS CLOSES PRIVATE PLACEMENT (4019T)
July 20 2020 - 1:00AM
UK Regulatory
TIDMGAL
RNS Number : 4019T
Galantas Gold Corporation
20 July 2020
GALANTAS GOLD CORPORATION
TSXV and AIM: Stock Symbol - 'GAL'
GALANTAS CLOSES PRIVATE PLACEMENT
Date: July 20, 2020. Galantas Gold Corporation (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
(GBPGBP376,240), 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$637,454 (GBPGBP376,240), "The
Closing"). The net proceeds to be raised by the Private Placement
are intended to be used to support mine operations and provide
general working capital for the Company.
The Private Placement included a subscription by LF Miton UK
Smaller Companies Fund, which has subscribed for 527,108 Common
Shares in the Private Placement and is managed by Premier Fund
Managers Ltd ("Premier Miton"). Post-closing, this fund holds
3,222,330 shares, equivalent to 9.17% of the Company's Common
Shares. The total number of shares controlled by Premier Miton post
completion of the Private Placement is 4,884,243, representing
13.89% of the Company's enlarged issued and outstanding Common
Shares.
The Private Placement also included a subscription from Melquart
Limited ("Melquart"), for 1,506,024 Common Shares, which gives rise
to an enlarged holding of 9,262,595 Common Shares post completion
of the Private Placement, or 26.35% of the Company's enlarged
issued and outstanding Common Shares.
A four month hold period (the "Hold Period") will apply to the
Common Shares of the Private Placement. The Hold Period will expire
on November 18, 2020. The shares issued pursuant to the Private
Placement will rank pari passu with the existing Common Shares in
issue of the Company.
Commission payable to brokers in Canada and the United Kingdom
in relation to the Private Placement totals CAD$ 33,673 (GBP
GBP19,874). 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: info@galantas.com 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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