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Galantas Announces Proposed Private Placement

GALANTAS GOLD CORPORATION

TSXV and AIM:  Stock Symbol – ’GAL’

GALANTAS ANNOUNCES PROPOSED PRIVATE PLACEMENT

Date : 11th May 2016.  Galantas Gold Corporation (the “Company”), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, announces a proposed private placement of shares and shares for debt exchange.

The private placement is expected to be for 16 million shares at a price of CDN$0.07875 per share (the “Placing”) for a total of CDN$1,260,000.  While the placement is expected for 16 million shares the Company may close for less than or more than this amount.  A four month hold period will apply to the shares and issuance will be subject to TSXV approval.  The shares will rank pari passu with the existing shares in issue of the Company.

In addition to the private placement, Roland Phelps, President & CEO, Galantas Gold Corporation, intends to, subject to approvals, enter into a shares for debt exchange on the same terms as the placement. Mr. Phelps will exchange debt accruing to him, as of 31st March 2016, for up to CDN$935,852 for up to 11,883,835 shares (the “Debt Exchange”).

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.

A further announcement will be made in due course detailing the results of the Placing and Debt Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Galantas Gold Corporation’s Issued and Outstanding Shares total 107,297,155.

Enquiries : Galantas Gold Corporation
L. Jack Gunter P.Eng – Chairman,  Roland Phelps C.Eng – President & CEO

Email: info@galantas.com  Telephone: (UK) +44 (0) 2882 241100

Website: www.galantas.com 

Grant Thornton UK LLP (Nomad)

Philip Secrett, Richard Tonthat  : Telephone: +44(0)20 7383 5100

Whitman Howard  Ltd (Broker & Corporate Adviser)

Nick Lovering : Telephone: +44(0)20 7659 1234

Share Price

TSX-V (CDN $): 0.09

AIM (£ p): 4.875

Gold Price (oz)

USD : 1,272.50

GBP : 960.99

The figures presented here are for informational purposes of current trends only and should not be considered an exact count

This page and other parts of the website contain statements relating to the intentions of the management to develop mine production and jewellery production. Such statements are forward looking and readers are cautioned that these statements are subject to risk and uncertainties as further detailed in quarterly Management Discussion and Analysis published on www.sedar.com

Approved for website uploading : R.Phelps