Galantas raises CAD 2.5m in two-part placing

Galantas Gold Corporation, the gold producer and explorer with a 100% interest in Northern Ireland's Omagh gold mine, announced on Monday that the private placement to the gross value of CAD 2,446,299, in line with the terms and proposed placing price previously outlined on 18 January, was anticipated to close in two parts.

The AIM- and TSX-traded firm said the first part of the placement had been closed for 27,371,035 common shares of no par value.

United Kingdom placees subscribed at a price of 4.5p per common share, and Canadian placees subscribed at a price of 7.25 Canadian cents per common share.

Receipts attached to the first part of the placement totalled CAD 2,021,501.

Galantas said the second part of the placement required acceptance of the TSX Venture Exchange, and was anticipated to be for 5,722,222 common shares for receipt of CAD 424,798.

It said a four month hold period will apply, which would expire for the first closing of the placing on 25 June.

UK-based investment institution Melquart subscribed for 22,222,222 common shares, which would give rise to a holding of 13% of the company's issued common shares.

In the first closing, Melquart acquired 16,500,000 shares, and subject to TSX Venture Exchange acceptance, Melquart would acquire an additional 5,722,222 common shares in the second closing and would be the only subscriber in the second closing of the placing.

“I am delighted to welcome new London financial institutions to our shareholder list and welcome the increased participation by Ross Beaty and other investors,” said Galantas president and CEO Roland Phelps.

“The funding allows us to immediately commence underground development of the Omagh gold-mine.”

Galantas said the net proceeds raised by the placing were intended to be used for working capital purposes and to commence underground development at the Omagh gold mine.