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Galantas closes second part of private placement

GALANTAS GOLD CORPORATION

TSXV and AIM:  Stock Symbol – ’GAL’

GALANTAS CLOSES SECOND PART OF PRIVATE PLACEMENT

Date : 2 March 2017.  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 that the second part of the private placement as previously outlined in a disclosure dated 27 February 2017, has closed.

As previously anticipated, in the second part of the placement, the Company issued 5,722,222 common shares of no par value ("Common Shares") for receipt of CDN$424,798 (UK£257,500  at CDN$1.6497) (“the Placing”).

 A four month hold period will apply. The hold period will expire for the second closing of the Placing on 3 July 2017. The shares issued pursuant to the placing will rank pari passu with the existing Common shares in issue of the Company.

Melquart Ltd, (“Melquart”) a UK based investment institution, subscribed for 5,722,222 Common Shares and was the only subscriber in the second closing of the Placing. The purchase increases Melquart’s stake to 13% of the Company’s issued Common Shares.

The Company has applied for admission of the Common Shares in connection with the first closing of the Placing to trading on the AIM market of the London Stock Exchange (“Admission”) with Admission expected to occur on or around 7 March 2017.

Following Admission and the second closing, Galantas Gold Corporation’s Issued and Outstanding Common Shares  total 170,894,087.

Roland Phelps, President & CEO, Galantas Gold Corporation, said, “We see the development of an underground gold mine at Omagh as an exciting investment opportunity. I am delighted that Melquart has joined our shareholder base to assist in helping to bring the opportunity  to fruition.”

The net proceeds raised by the Placing are intended to be used for working capital purposes and to commence underground development at the Omagh gold mine.

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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

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, Grant Barker: Telephone: +44(0)20 7659 1234

Share Price

TSX-V (CDN $): 0.09

AIM (£ p): 5.625

Gold Price (oz)

USD : 1,256.20

GBP : 988.63

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