10th Jun 2016 17:06
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 now closed and was oversubscribed, after provisionally reporting the results of the placing in May.
The results were provisionally reported last month as the placing had not yet closed due to it being subject to approvals.
Galantas said on Friday 18.6 million shares were sold in the placing at a price of CAD0.07875 per share, raising CAD1.5 million. Shares in Galantas closed flat at 5.38 pence on Friday.
A four-month hold period until October 10 will apply to the shares, Galantas said.
The company added that the majority of the placement was taken up by Ross Beaty, chairman of Pan American Silver Corp, who bought 12.8 million shares. Beaty now holds 20.9% of Galantas or 28.9 million shares, along with 16.0 million warrants, the company said.
In addition to the private placement, Roland Phelps, Galantas president and chief executive officer, entered into a shares-for-debt exchange on the same terms as the placement.
Phelps exchanged debt owed to him of CAD935,852 for 11.9 million shares. Following the transaction, Phelps holds 33.4 million shares of 24.2% of the enlarged share capital.
Galantas said it intends to use the proceeds for working capital purposes, to finance its legal commitments in regard to its underground planning consent, finance work on conditions precedent and progress exploration activities.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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