REG - Galantas Gold Corp - Upsize to Private Placement of Units

Galantas GoldAnnouncement

11/08/2022 13:45

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RNS Number : 7550V  Galantas Gold Corporation  11 August 2022

GALANTAS GOLD ANNOUNCES UPSIZE TO

PRIVATE PLACEMENT OF UNITS

Not for distribution to United States news wire services or

for dissemination in the United States

August 11, 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 amending agreement with Canaccord Genuity Corp., on
behalf of itself and a syndicate of agents including Cormark Securities Inc.
and Research Capital Corporation (together, the "Agents"), to increase the
size of the Company's previously announced proposed "best efforts" private
placement to up to 13,333,340 units of the Company ("Units") at a price of
C$0.45 per Unit (the "Offering Price") for aggregate gross proceeds of up to
approximately C$6 million (the "Upsized Offering"). Each Unit will be
comprised of one common share in the capital of the Company (each, a "Common
Share") and one-half of one common share purchase warrant of the Company (each
whole common share purchase warrant, a "Warrant"). Each Warrant will entitle
the holder thereof to purchase one Common Share (a "Warrant Share") at a price
of C$0.55 per Warrant Share for a period of 30 months following the closing of
the Upsized Offering.

The Company has also granted the Agents an option, exercisable, in whole or in
part, at any time up to 48 hours prior to closing of the Upsized Offering,
which will allow the Agents to sell up to an additional 2,000,001 Units at the
Offering Price.

The Company intends to use the net proceeds of the Upsized Offering for
exploration and development at the Joshua Target as well as for working
capital and general corporate purposes.

The Upsized Offering is expected to close on or about August 25, 2022, or such
other date as the Company and the Agents may agree, and is subject to certain
closing conditions including, but not limited to, the receipt of all necessary
approvals, including the conditional acceptance of the TSX Venture Exchange.
The Upsized Offering will be made by way of private placement in each of the
provinces of Canada pursuant to applicable exemptions from the prospectus
requirements, and in such other jurisdictions, in each case in accordance with
all applicable laws, provided that no prospectus, registration statement or
other similar document is required to be filed in such jurisdiction. The
securities issued under the Upsized Offering will be subject to a four month
hold period under applicable Canadian securities laws.

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.

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, Samuel
Littler
 

Telephone: +44(0)20 7383 5100

 

Panmure Gordon & Co (AIM Joint Broker & Corporate Adviser)

Hugh Rich, John Prior

Telephone: +44(0)20 7886 2500

 

SP Angel Corporate Finance LLP (AIM Joint 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 terms
of the Upsized Offering, the use of proceeds of the Upsized Offering, the
timing and ability of the Company to close the Upsized Offering, the timing
and ability of the Company to receive necessary regulatory approvals, 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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