REG - Galantas Gold Corp - Trading Agreement Entered into with Ocean Partners

Galantas GoldAnnouncement

09/12/2022 07:00

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RNS Number : 1416J  Galantas Gold Corporation  09 December 2022

GALANTAS GOLD ENTERS INTO TRADING AGREEMENT WITH OCEAN PARTNERS

 

December 9, 2022, TORONTO, CANADA - Galantas Gold Corporation (TSX-V &
AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company") is pleased to announce
that it has entered into an agreement (the "Trading Agreement") with Ocean
Partners UK Ltd. ("Ocean"), whereby Ocean has sold on behalf of Galantas call
options on 6,000 ounces of gold at 500 ounces per month from February 2024 to
January 2025 at a strike price of US$1,775 per ounce for proceeds of
US$804,000 to Galantas (an option premium of US$134 per gold ounce).

 

Proceeds from the sale will be used to fund development of the underground
mining operations at the Omagh Gold Project in Northern Ireland and working
capital.

 

Mario Stifano, CEO of Galantas, commented: "We are grateful for the
long-standing support of our shareholders who see the district-scale and
high-grade potential of the Omagh Gold Project, and particularly Ocean for
allowing Galantas to utilize its trading platform and credit lines that are
not typically available to junior producers. The sale of call options
represents approximately 1% of our resource base, resulting in a strengthened
balance sheet as we work towards production ramp-up in 2023."

 

Terms of the Trading Agreement

 

If the gold price during February 2024 to January 2025 is at or below US$1,775
per ounce, Galantas will receive the price of gold at the time for the sale of
its gold produced. If the gold price is above US$1,775 per ounce, Galantas
will receive US$1,775 per ounce in revenue for the sale of its gold. Ocean has
agreed to maintain all margin requirements through its existing credit lines
on behalf of Galantas and provide additional financial support.

 

Pursuant to the Trading Agreement, and in return for Ocean facilitating the
call option sale and agreeing to maintain all margin requirements on Galantas'
behalf, which Galantas has determined has a value of at least CAD$150,000,
Galantas has agreed to grant 500,000 warrants (the "Warrants") to Ocean at an
exercise price of CAD$0.55 expiring on January 31, 2025. The Warrants are
subject to a hold period under applicable securities laws and the rules of the
TSX Venture Exchange.

‎

The Trading Agreement and the issuance of Warrants to Ocean shall be subject
to the prior approval of the TSX Venture Exchange. ‎There is no assurance
that TSX Venture Exchange approval will be obtained.

 

Ocean is a person closely associated with Brent Omland, a Director of Galantas
(within the meaning of the EU Market Abuse Regulation). Mr. Omland is Chief
Financial Officer of Ocean and is a nominee of Ocean on the board of Galantas
and holds a minority stake in, and is a director of, Ocean's parent entity.

 

No finder's fees will be paid in connection with the Trading Agreement.

 

The notification set out below, made pursuant to Article 19(3) of the Market
Abuse Regulation which is part of UK law by virtue of the European Union
(withdrawal) Act 2018, provides further details.

 

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, Samuel Littler

Telephone: +44(0)20 7383 5100

 

SP Angel Corporate Finance LLP (AIM Broker)

David Hignell, Charlie Bouverat (Corporate Finance)

Grant Barker (Sales & Broking)

Telephone: +44(0)20 3470 0470

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws, including the results of exploration
programs, and mine development at the Omagh Gold Project. Forward-looking
statements are based on estimates and assumptions made by Galantas in light of
its experience and perception of historical trends, current conditions and
expected future developments, as well as other factors that Galantas believes
are appropriate in the circumstances. Many factors could cause Galantas'
actual results, the performance or achievements to differ materially from
those expressed or implied by the forward looking statements or strategy,
including: gold price volatility; discrepancies between actual and estimated
production, actual and estimated metallurgical recoveries and throughputs;
mining operational risk, geological uncertainties; regulatory restrictions,
including environmental regulatory restrictions and liability; risks of
sovereign involvement; speculative nature of gold exploration; dilution;
competition; loss of or availability of key employees; additional funding
requirements; uncertainties regarding planning and other permitting issues;
and defective title to mineral claims or property. These factors and others
that could affect Galantas' forward-looking statements are discussed in
greater detail in the section entitled "Risk Factors" in Galantas' Management
Discussion & Analysis of the financial statements of Galantas and
elsewhere in documents filed from time to time with the Canadian provincial
securities regulators and other regulatory authorities. These factors should
be considered carefully, and persons reviewing this press release should not
place undue reliance on forward-looking statements. Galantas has no intention
and undertakes no obligation to update or revise any forward-looking
statements in this press release, except as required by law.

 

 

 

(UK) DEALING NOTIFICATION FORM
 FOR USE BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY AND THEIR CLOSELY
ASSOCIATED PERSONS

 

 1.      Details of the person discharging managerial responsibilities/person closely
         associated
 a)      Name:                                                       Ocean Partners UK Ltd
  2.     Reason for the notification
 a)      Position/status:                                            Ocean Partners UK Ltd is a person closely associated with Brent Omland, a
                                                                     Director of Galantas
 b)      Initial notification/Amendment:                             Initial Notification
 3.      Details of the issuer, emission allowance market participant, auction
         platform, auctioneer or auction monitor
 a)      Name:                                                       Galantas Gold Corporation
 b)      LEI:                                                        LEI: 213800JKVPLLKO4KVB93
 4.      Details of the transaction(s): section to be repeated for (i) each type of
         instrument; (ii) each type of transaction; (iii) each date; and (iv) each
         place where transactions have been conducted
 a)      Description of the financial instrument type of instrument  Share purchase warrants

         Identification Code

                                                                     ISIN: CA36315W3012
 b)      Nature of the transaction                                   Grant of warrants
 c)      Price(s) and volume                                         Price     Volume
                                                                     CAD$0.55  500,000
 d)      Aggregated information                                      N/A single transaction
 e)      Date of the transaction                                     December 8, 2022
 f)      Place of the transaction                                    Outside of a trading venue

d)

Aggregated information

N/A single transaction

e)

Date of the transaction

December 8, 2022

f)

Place of the transaction

Outside of a trading venue

 

 

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