Galantas Gold Corp (AIM: GAL, TSX-V: GAL, OTC: GALKF) has announced that it has entered into a new $530,000 (£440,000) loan agreement with Ocean Partners UK Ltd to finance the development of its underground mining operations at the Omagh gold project in Northern Ireland.
Galantas also said it exercised an option to extend a $1.06 million loan it entered into with Ocean in January for an additional six months through the end of January 2023, paying Ocean an additional $40,000 structuring fee. dollars.
“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 develop our high-grade resources,” said Managing Director Mario. Stefano.
Interest on the six-month loan announced today is at an annual rate of 12% compounded monthly and is repayable in full at maturity of the loan.
In return, Ocean will receive 125,000 Galantas stock warrants, subject to TSX Venture Exchange approval.
Galantas will also pay Ocean a commitment fee of $10,000 which will be deducted from the original loan proceeds. Galantas has the option to extend the loan for an additional six months by paying Ocean an additional structuring fee of $20,000.