27th Jul 2015 09:29
LONDON (Alliance News) - Galantas Gold Corp on Monday said it has closed the CAD2.4 million non-brokered private placement that was originally announced earlier in July.
The miner issued 20 million units, with each unit comprised of one share and one share purchase warrant at a price of CAD0.12 per unit. Each warrant is exercisable into one share for 12 months at an exercise price of CAD0.16 per share. A four-month hold period will apply, expiring on November 25, 2015.
The majority of the placement was taken up by Ross Beaty, chairman of Pan American Silver Corp, who will acquire 16.0 million units under the placement. Before exercising any warrants, Beaty will hold a 14.9% stake in the company and this would increase to 25.1% is he exercises all of his options.
"Ross Beaty has an impressive and well known investment record. I'm delighted that he has chosen to invest in our operation. It is a vote of confidence," said President and Chief Executive Roland Phelps.
The company 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 on June 11, 2015.
Galantas shares were up 2.1% to 5.87 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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