REG - Galantas Gold Corp - Galantas Gold Enters Into Loan Agreement

Galantas GoldAnnouncement

25/01/2022 07:05

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RNS Number : 4463Z  Galantas Gold Corporation  25 January 2022

 

 

GALANTAS GOLD ENTERS INTO LOAN AGREEMENT

 

 

January 25, 2022, TORONTO, CANADA - 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 working capital.

 

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 the date of Closing.

 

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."

 

 

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.

 

About Galantas Gold Corporation

 

Galantas Gold Corporation is a Canadian public company that trades on the
TSX-Venture Exchange and the London Stock Exchange AIM market, 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 operating and expanding
gold production and resources at the Omagh Project in Northern Ireland.

 

 

Enquiries

 

Galantas Gold
Corporation

Mario Stifano: Chief Executive Officer

Email: info@galantas.com

Website: www.galantas.com

Telephone: +44(0)28 8224 1100

 

Grant Thornton UK LLP (AIM Nomad)

Philip Secrett, 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

 

 

 

 

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