REG - Galantas Gold Corp - Update on Recently Completed Private Placement

Galantas GoldAnnouncement

31/10/2022 07:00

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RNS Number : 5709E  Galantas Gold Corporation  31 October 2022

 

 

GALANTAS GOLD PROVIDES UPDATE ON

RECENTLY COMPLETED PRIVATE PLACEMENT OF UNITS

Not for distribution to United States news wire services

or for dissemination in the United States

October 31, 2022, TORONTO, CANADA - Galantas Gold Corporation (TSX-V &
AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company") is providing an update
on the Company's private placement of units of the Company ("Units") as
announced by way of news release on August 8, 2022, August 11, 2022 and August
30, 2022. The Company wishes to correct its disclosure to clarify that a
portion of the closing of such private placement represented "Shares for
Services" under TSX Venture Exchange Policy 4.3.

Pursuant to the private placement, on August 30, 2022, the Company sold an
aggregate of (i) 12,604,452 Units at a price of C$0.45 per Unit (the "Offering
Price") on a "best efforts" brokered private placement basis (the "Brokered
Offering") for gross proceeds of C$5,672,003.40 and (ii) 506,667 Units at the
Offering Price on a non-brokered private placement basis (together with the
Brokered Offering, the "Offering") for gross proceeds of C$228,000.15, for
aggregate gross proceeds to the Company of approximately C$5.9 million,
including full exercise of the agents' option. The balance of 2,222,222 Units
were sold to QME Mining Services (NI) Limited, a wholly owned subsidiary of
Quarry & Mining Equipment Limited, a third-party service provider on the
same terms as the Brokered Offering. The aggregate subscription price for such
Units, being $999,999.90, was offset against certain fees payable to the
third-party service provider by the Company pursuant to a service agreement
between the third-party service provider and the Company dated August 30, 2022
(the "Shares for Services Arrangement"), for the underground development
towards the Joshua Vein at the Omagh Gold Project. On September 15, 2022, the
Company announced the engagement of QME for this work.

The securities issued under the Offering and the Shares for Services
Arrangement are subject to a four-month hold period under applicable Canadian
securities laws which will expire on December 31, 2022. The Offering and the
Shares for Services Arrangement are subject to final acceptance of the TSX
Venture Exchange.

The securities offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, or any state securities law,
and may not be offered or sold in the United States absent registration or an
exemption from such registration requirements. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.

In all other respects, the information contained in the Company's news release
of August 30, 2022 remains the same.

The Company also reports SP Angel Corporate Finance LLP is now the Company's
sole AIM broker.

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 news 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, but not limited to, the timing
and ability of the Company to receive necessary regulatory approvals,
including the final acceptance of the Offering and the Shares for Services
Arrangement from the TSX Venture Exchange, and the plans, operations and
prospects of the Company. 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 news 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 news
release, except as required by law.

 

 

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