REG - Galantas Gold Corp - UPDATE ON MARKETING CONTRACTS

Galantas GoldAnnouncement

04/03/2024 07:00

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RNS Number : 4124F  Galantas Gold Corporation  04 March 2024

 

GALANTAS GOLD ANNOUNCES SAMPLING PROGRAM FOR GAIRLOCH GOLD-BEARING VMS PROJECT
IN SCOTLAND, IN COLLABORATION WITH UNIVERSITY OF EDINBURGH

 

UPDATE ON MARKETING CONTRACTS

MARCH 4, 2024, TORONTO, CANADA - Galantas Gold Corporation (TSX-V & AIM:
GAL; OTCQX: GALKF) ("Galantas" or the "Company") is pleased to provide an
update on the Gairloch Project in Scotland.

Galantas Gold, in collaboration with the University of Edinburgh, is currently
undertaking a sampling program of drill core and outcrop to establish the
Kerry Road deposit's geochemical signature which will be used to locate new
mineralization in the Gairloch Schist Belt. The work will include petrology,
scanning electron microscope (SEM) and electron microprobe (EMP) analysis on
selected rock samples. This sampling work is expected to help identify new
target areas for follow-up exploration work and drilling.

 

Mario Stifano, CEO of Galantas, commented: "We are honored to collaborate with
the University of Edinburgh and look forward to the results of this detailed
work. The team at the university's School of Geosciences brings experience in
cutting-edge research and expert knowledge of VMS systems to help us better
understand the Kerry Road deposit and determine the location of other
mineralized bodies in the vicinity."

 

Overview of VMS deposits and work with the University of Edinburgh

The green energy transition will require significant amounts of metals such as
copper, zinc and cobalt to enable the growth of clean technologies, electric
vehicles and renewables. The Kerry Road copper-zinc-gold deposit at the
Gairloch Project is classified as a Besshi-type VMS  deposit, which is
associated with cobalt enrichment. Additionally, its host rocks appear to be
geologically similar to those in the Trans-Hudson Orogen in Manitoba and
Saskatchewan which contain the prolific Flin-Flon and Snow Lake VMS mining
camps. This makes the Kerry Road deposit an important potential resource for
the future.

VMS deposits are rarely solitary and typically exhibit multiple mineralized
bodies in each system.  These systems are formed through hydrothermal
activity, which alters the surrounding rock and leaves a geochemical signature
(or alteration halo) which can be detected through certain types of detailed
analysis and observations. Each mineral deposit will have its own unique
geochemical signature based on the composition of the local rock. This project
with the University of Edinburgh aims to identify the Kerry Road's unique
signature using garnet, chlorite, white mica and other silicate minerals. The
results will be compared to new and existing data from other metamorphosed VMS
deposits of the Yilgarn Craton, Western Australia - for example, Teutonic
Bore, Wheatley, King, and Nimbus. The work is supported by grants from the
Geological Society of London and Geological Society of Glasgow to the
University of Edinburgh PhD student Cendi Dana.

Representative footwall, ore horizon and hanging-wall samples from drill core
and outcrops have been collected for petrography, mineral chemistry, and
whole-rock geochemical analysis. Whole-rock geochemical analysis will be
carried out using x-ray fluorescence and inductively coupled plasma mass
spectrometry to establish geochemical trends and alteration halos. Mineralogy
will be characterized by petrographic observations (transmitted and reflected
light petrology, and scanning electron microscopy), coupled with mineral
chemical analysis using an electron microprobe at the University of
Edinburgh's Materials and Micro-Analysis Centre. When coupled with whole-rock
geochemical data, the EMP data will allow geologists to determine the factors
involved in the changes of mineral chemistry. This project will further
characterize the alteration mineralogy of the Kerry Road deposit, and aid
exploration efforts toward additional discoveries in the regional
stratigraphy.

 

For more information on the Gairloch Project and drill results to date, see
Galantas' press releases dated July 10, 2023; July 27, 2023; August 29, 2023;
and October 16, 2023.

 

Figures 1 & 2: Outcrop of chalcopyrite and pyrrhotite mineralization found
300 metres northwest along trend from the Kerry Road deposit.

 

 

 

Galantas Gold announces marketing contracts

The Company announces that it engaged GRIT Capital Corp ("Grit") of Toronto,
Ontario, to create print advertising campaigns, including in GRIT's flagship
newsletter, a landing page for advertising campaigns and CEO presentations on
Twitter spaces, to provide the Company with exposure to potential investors,
in accordance with Policy 3.4 - Investor Relations, Promotional and
Market-Making Activities of the TSX Venture Exchange (the "Exchange"). The
activity undertaken by GRIT occurred in its newsletter at gritcap.io and on a
partner's Twitter account @WOLF_Financial. Grit was engaged in March 2023 for
a period of 26 weeks, which arrangements are now complete at a fee of
USD$65,000 (plus HST). The USD$65,000 was paid as to USD$5,000 in cash on
entering into the agreement and USD$60,000 through the issuance of units. No
buying or selling recommendations are made, no price projections on the
Company are given and nor do they give any financial advice. The arrangements
with Grit were and are an arm's length relationship with the Company. Grit is
operated by Genevieve Sarah Roch-Decter. Pursuant to the arrangements Grit
subscribed for and were issued 228,333 common shares (the "Grit Shares") and
228,333 share purchase warrants (the "Grit Warrants") (collectively the "Grit
Units") of the Company under the private placement completed by the Company on
March 27, 2023. The issuance of the Grit Units has been reviewed by the
Exchange pursuant to policy 3.4 which states that compensation in the form of
shares is not acceptable and payment should be in the form of cash. The
Exchange has requested that the Grit Units be cancelled. Grit agreed that the
Grit Warrants issued to them will be cancelled by the Company. Mr. Stifano,
the CEO of the Company, has agreed to cancel 228,333 common shares of the
Company ("Shares") owned by him. As of the date hereof, to the Company's
knowledge, after the cancellation of the Shares held by Mr. Stifano and the
Grit Warrants, GRIT (including its directors and officers) owns directly or
indirectly 228,333 Shares of the Company and does not have any right or intent
to acquire any additional Shares of the Company. The 228,333 Shares and
228,333 Grit Warrants were cancelled on the TSX Venture Exchange effectively
February 27, 2024 and 228,333 shares will be cancelled on AIM on 5 March 2024.

The Company also announces that it engaged ABR Media Company ("ABR"), of
Langley, British Columbia, covering a sponsorship of the Rocks and Stocks News
website, whereby ABR will provide certain video interview services to the
Company in accordance with Policy 3.4 - Investor Relations, Promotional and
Market-Making Activities of the Exchange. ABR has been engaged since March
2023 for a period of one year, for a total fee of C$36,000. The C$36,000 was
paid as to C$9,000 cash on closing of a private placement and C$27,000 through
the issuance of Units. ABR conducts interviews with the Company which is
distributed to ABR's subscriber base. There are no performance factors related
to ABR's services. No buying or selling recommendations are made, no price
projections on the Company are given and nor do they give any financial
advice.  The arrangements with ABR were and are an arm's length relationship
with the Company. ABR and Rocks and Stocks News are operated by Allan Barry
Laboucan who resides in Mexico. Pursuant to the arrangements Mr. Laboucan
subscribed for 77,777 shares (the "Laboucan Shares") and 77,777 warrants "the
Labouchan Warrants") (collectively the "Labouchan Units") of the Company under
the private placement completed by the Company on March 27, 2023. The issuance
of the Laboucan Units has been reviewed by the Exchange pursuant to policy 3.4
which states that compensation in the form of shares is not acceptable and
payment should be in the form of cash. The Exchange has requested that the
Labouchan Units be cancelled. Mr. Laboucan agreed that the Labouchan Warrants
issued to him will be cancelled by the Company. Mr. Stifano has agreed to
cancel 77,777 Shares owned by him. As of the date hereof, to the Company's
knowledge, after the cancellation of the 77,777 Shares held by Mr. Stifano and
the Labouchan Warrants, Mr. Laboucan does not own directly or indirectly any
Shares of the Company and does not have any right or intent to acquire Shares
of the Company. The 77,777 Shares and 77,777 Labouchan Warrants were cancelled
on the TSX Venture Exchange effectively February 27, 2024 and 77,777 shares
will be cancelled on AIM on 5 March 2024.

Following the cancellation of the 306,110 Shares held by Mr. Stifano, Mr.
Stifano will be interested in a total of 156,445 Shares representing 0.14% of
the Company's issued share capital.

 

Amendment to March 27, 2023 press release

The Company advises that because of the reversal of the issuance of Grit Units
and Labouchan Units described above, the press release of March 27, 2023,
announcing the closing of the private placement for cash gross proceeds of
$2,963,142.36 should have been for closing cash proceeds of $2,825,942.64.
Following the cancellation of the 228,333 Shares and the 77,777 Shares, the
issued and outstanding Shares of the Company is 114,535,293.

Qualified Person

 

The technical and historical information pertaining to the Gairloch Project in
this release has been reviewed and approved by Gavin Berkenheger (CGeol,
EurGeol) who is considered, by virtue of his education, experience and
professional association, a Qualified Person under the terms of NI 43-101. Mr.
Berkenheger is not considered independent under NI 43-101 as he is a
consultant of Galantas Gold Corporation.

 

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.

 

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, and
exploring the Gairloch Project hosting the Kerry Road gold-bearing VMS deposit
in Scotland.

 

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, Enzo Aliaj

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 results of exploration and
sampling programs at the Gairloch 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:                                                       Mario Stifano
  2.     Reason for the notification
 a)      Position/status:                                            Chief Executive Officer
 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  Common Shares of nil par value

         Identification Code

                                                                     ISIN: CA36315W3012
 b)      Nature of the transaction                                   Cancellation of shares
 c)      Price(s) and volume                                         Price  Volume
                                                                     N/A    306,110
 d)      Aggregated information                                      N/A single transaction
 e)      Date of the transaction                                     February 27, 2024
 f)      Place of the transaction                                    Outside of a trading venue

d)

Aggregated information

N/A single transaction

e)

Date of the transaction

February 27, 2024

f)

Place of the transaction

Outside of a trading venue

 

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