TORONTO, Jan. 25, 2022 (GLOBE NEWSWIRE) — Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) announces that it has entered into a loan agreement (“ Loan Agreement) for US$1.06 million (the “Loan”) with Ocean Partners UK Ltd. (“Ocean” or the “Lender”). The loan is to be used to further develop the Omagh gold project in Northern Ireland and for working capital.
The loan is repayable six months from the closing date of the loan issuance (the “closing”) and will bear interest at an annual rate of 10% compounded monthly payable upon repayment of the loan.
In consideration for granting the Loan, Ocean will receive upon closing of the Loan Agreement, 250,000 Galantas warrants (the “Premium Warrants”), subject to acceptance by the TSX Venture Exchange . Each bonus warrant will be exercisable into one common share of Galantas for a period of 12 months from closing at an exercise price equal to the closing price of the common shares of the Company on the TSX Venture Exchange on January 2022.
As part of the loan agreement, Galantas will also pay Ocean a $20,000 structuring fee to be deducted from the initial loan proceeds, and an advisory fee of $40,000 which will be billed separately by Ocean. Galantas may, at its option, extend the loan for an additional six months by paying Ocean an additional structuring fee of $40,000.
The above terms are subject to TSX Venture Exchange approval under TSX Venture Exchange Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions.
Mario Stifano, CEO of Galantas, said, “I would like to thank Ocean Partners for their continued, long-term support of Galantas and their willingness to work with us to achieve production by the end of the first quarter of this year. We are excited to create value for all our shareholders and stakeholders by increasing the production and resources of our very promising project. »
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.
The information in this announcement is deemed to be inside information as set out in the retained EU law version of the Market Abuse Regulation (EU) No 596/2014 (the “UK MAR”) which forms part of the UK law under the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company’s obligations under section 17 of the UK MAR. As of the publication of this announcement, this privileged information is henceforth 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 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
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including the closing of the loan and the commencement of mining production from the Omagh Gold Project. 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; competition; 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.