8th Apr 2014 13:26
LONDON (Alliance News) - Galantas Gold Corp Tuesday said that, following its ongoing share consolidation plan, it intends to complete a private placing to raise GBP500,000.
The AIM-listed gold exploration and development company, with operations in Northern Ireland, said its consolidation process, which it announced in January, will convert every five old shares into one new share in order to improve on the company's current trading price.
Currently the company's trading price falls below the minimum price requirements for private placements.
The company said the consolidation is scheduled to be effective at opening of the TSX Venture Exchange on April 14.
Following the consolidation, Galantas plans to complete a private placement of a minimum of 10 million units which will consist of 1 new share and 1 warrant in order to raise a minimum of GBP500,000.
The company also said it plans to exchange a loan of roughly GBP716,256 for 14.4 million shares, or 16.6% of the company following the consolidation.
Galantas Gold shares were untraded at 1.325 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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