Galantas Announces a Proposed Private Placement to Advance Plans for Production and Exploration Expansion

TORONTO, April 19, 2021 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (“Galantas” or the “Company”) is pleased to announce a proposed Private Placement that will provide for the financing to bring the Galantas Gold Mine in Omagh, Northern Ireland, into full production. Highlights of the Private Placement are summarized below.

The Private Placement consists of a minimum of 17 to 22 million “Units” at C$0.30 per Unit (the “Offering Price”), where each Unit comprises one common share and one warrant. The minimum gross proceeds expected to be raised are C$5,100,000, with maximum gross proceeds of C$6,600,000. Each warrant will be exercisable into one additional share at an exercise price of C$0.40 for 24 months from the closing date of the placement. There will be a 4-month hold period on the trading of securities issued in connection with this offering.

The net funds raised will be mainly used for bringing the Galantas Gold Mine into full commercial production and for exploration to expand the high-grade gold resources.

Melquart Ltd (“Melquart”), the Company’s largest shareholder, is expected to subscribe for 2,000,000 Units for gross proceeds of C$600,000, and Roland Phelps is expected to subscribe for Units for the equivalent of GBP£250,000 (approximately C$435,000).

Under the terms of the Private Placement, detailed within a non-binding Letter of Intent and completion of its conditions, Ocean Partners UK Ltd (“Ocean Partners”) will subscribe for a minimum of 1,666,667 Units of the Private Placement, for a subscription of C$500,000, and to purchase any additional Units up to a maximum of C$4,500,000 required to reach the minimum gross proceeds from the Private Placement of C$5,100,000, including Melquart’s subscription.

In regard to the commitment provided by Ocean Partners, it is expected Ocean will receive fees of C$112,500 as a commitment fee equivalent to 2.5% of C$4,500,000, and 2.5% of the gross proceeds for the Units to which it actually subscribes, in lieu of any finder’s fees that would have had to be otherwise paid; both of which will be paid by the issuance of Units at the Offering Price. The Company will bear 75% of certain legal costs incurred by Ocean Partners’ legal counsel in the preparation of suitable documentation.