Galantas Gold Enters Into Loan Agreement
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 for further development of the Omagh Gold Project in Northern Ireland and
The Loan is payable six months from date of closing of the issue of the Loan (the “Closing”) and will bear interest at an annual rate of 10% compounded monthly payable upon repayment of the Loan.
As consideration for providing the Loan, Ocean will receive upon closing of the Loan Agreement, 250,000 warrants of Galantas (the “Bonus 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 the Closing at an exercise price equal to the closing price of the Company’s common shares on the TSX Venture Exchange on January 24, 2022.
In connection with the Loan Agreement, Galantas will also pay Ocean a structuring fee of US$20,000 to be deducted from the initial proceeds of the Loan, and a consulting fee of US$40,000 that will be invoiced separately by Ocean. Galantas may at its option extend the Loan for a further six months by paying Ocean an additional structuring fee of US$40,000.
The above terms are subject to TSX Venture Exchange approval under the TSXV Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions.
Mario Stifano, CEO of Galantas, commented: “I want to thank Ocean Partners for their continued, long-term support of Galantas, and their willingness to work with us to achieve production at the end of Q1 this year. We are excited to drive value for all our shareholders and stakeholders by growing production and resources at our highly prospective project.”
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.
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.