TORONTO, Feb. 03 10, 2022 (GLOBE NEWSWIRE) — Galantas Gold Corporation (TSX-V and AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) announces the closing of the loan agreement (“Loan Agreement”) for US$1.06 million (the “Loan”) with Ocean Partners UK Ltd. (“Ocean” or the “Lender”).
Terms of the Loan Agreement, as previously announced on January 25, 2022:
- The Loan matures on July 31, 2022 (the “Maturity Date”).
- The loan will bear interest at an annual rate of 10% compounded monthly payable upon repayment of the loan.
- A $20,000 structuring fee was paid to Ocean.
- A $40,000 consulting fee will be paid to Ocean, to be billed separately by Ocean.
- 250,000 warrants (the “Bonus Warrants”) have been granted to Ocean, exercisable for a period of 12 months at an exercise price of C$0.50. The Bonus Warrants are subject to a hold period under applicable securities laws and TSX Venture Exchange rules, expiring on June 4, 2022.
- An extension fee of US$40,000 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 further develop the Omagh gold project in Northern Ireland and for working capital.
TSX Venture Exchange approval has been obtained pursuant to TSX Venture Exchange Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions.
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
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 Broker & Corporate Adviser)
Nick Lovering, Hugh Rich, John Prior
Telephone: +44(0)20 7886 2500
This press release contains forward-looking statements within the meaning of applicable securities laws. 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; competetion; 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.