6th Jul 2015 09:28
LONDON (Alliance News) - Galantas Gold Corp Monday said it has conducted a non-brokered private placement to raise CAD2.4 million, with the majority of that being invested by Ross Beaty.
The miner said the placement consisted of 20 million units, equating to CAD0.12 per unit, with each unit comprising of one share and one share-purchase warrant. Each warrant shall be exercisable into one Galantas share for a period of 12 months from closing at an exercise price of CAD0.16, it said.
Galantas shares were up 8.8% to 6.80 pence per share on Monday morning.
The majority of the units have been taken up by Ross Beaty, chairman of Pan American Silver Corp, who will acquire 16.0 million units. Following the deal, Beaty will hold a 14.9% stake in Galantas before he exercises any warrants.
"Ross Beaty has an exceptional and profitable track record of investment in mining companies. I am delighted that he has shown confidence in the Galantas Omagh gold project and will join our shareholder base," said President and Chief Executive Roland Phelps.
Galantas intends to use the net proceeds of the placement for exploration, for initiating development of the underground Omagh gold-mine and for working capital purposes. The Omagh gold-mine, situated in County Tyrone, Northern Ireland was until recently worked by open-pit methods and received planning consent for underground mining in June.
By Joshua Warner; [email protected]; @JoshAlliance
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