27th May 2016 16:31
LONDON (Alliance News) - Galantas Gold Corp, a gold producer and explorer with a 100% interest in Northern Ireland's Omagh gold mine, on Friday said its planned private placement has been provisionally over-subscribed.
Galantas said up to about 18.6 million shares are expected to be sold in the placing, which hasn't closed because it is subject to approvals, at a price of CAD0.07875 per share. Shares in Galantas were untraded Friday in London at 5.25 pence, giving the placing a value of GBP976,500.
A four-month hold period will apply to the shares and issuance will be subject to TSX Venture Exchange approval.
In addition to the private placement, Roland Phelps, president and chief executive officer, intends to enter into a shares-for-debt exchange on the same terms as the placement.
Phelps intends to exchange debt owed to him of up to CAD935,852 for up to 11.9 million shares.
"The net proceeds raised by the placing are intended to be used for working capital purposes, to finance the company's legal commitments in regard to its underground planning consent, finance work on conditions precedent and progress exploration activities," Galantas said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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