Galantas agrees $1.06m short-term loan to fund Omagh gold development

Galantas Gold announced the closing of a loan agreement for $1.06m with Ocean Partners UK on Friday, to fund further developments on the Omagh Gold Project.

The AIM-traded firm said the loan would mature on 31 July, and would bear an annual interest rate of 10%, compounded monthly and payable on repayment of the loan.

A $20,000 structuring fee was paid to Ocean, and a $40,000 consulting fee would also be paid, to be invoiced separately by Ocean.

Galantas said it had granted 250,000 warrants to Ocean, which would be exercisable for 12 months at a price of 50 Canadian cents each.

The bonus warrants would be subject to a hold period under securities laws and the rules of the TSX Venture Exchange, expiring on 4 June.

Galantas also said a $40,000 extension fee would be paid to Ocean if the company chose to extend the loan for a further six months from the maturity date.

“Proceeds from the Loan will be used for further development of the Omagh Gold Project in Northern Ireland, and working capital,” the Galantas board said in its statement.

At 0917 GMT, shares in Galantas Gold Corporation were down 2.67% in London, at 32.12p.