Galantas closes first part of private placement


TSXV and AIM: Stock Symbol – ’GAL’


Date : 27 February 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 private placement to the gross value of CDN$ 2,446,299 (UK£1,482,875 at CDN$1.6497) , in line with the terms and proposed placing price previously outlined in the disclosure dated 18 January 2017 (the "Placing”) is anticipated to close in two parts.

The first part of the placement has been closed for 27,371,035 common shares of no par value ("Common Shares"). United Kingdom placees have subscribed at a price of UK£0.045 per Common Share. Canadian placees have subscribed at a price of CDN$0.0725 per Common Share. Receipts attached to the first part of the placement total CDN$ 2,021,501 (£1,225,375 at CDN$1.6497).

The second part of the placement requires acceptance of the TSX Venture Exchange and is anticipated to be for 5,722,222 Common Shares for receipt of CDN$424,798 (UK£257,500 at CDN$1.6497).

A four month hold period will apply. The hold period will expire for the first closing of the Placing on 25 June 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 22,222,222 Common Shares, which would give rise to a holding of 13% of the Company’s issued Common Shares. The TSX Venture Exchange impose due diligence requirements on persons acquiring 10% or more of an issuer’s shares in a private placing. In the first closing, Melquart has acquired 16,500,000 Common Shares or 9.99% of the Company’s issued Common Shares. Subject to TSX Venture Exchange acceptance, the procedure of which is in process, Melquart would acquire an additional 5,722,222 Common Shares in the second closing and would be the only subscriber in the second closing of the Placing.

Mr. Ross Beaty has subscribed for 3,326,170 Common Shares. As a consequence of the first closing of the Placing, Mr. Beaty has an interest in 32,151,567 Common Shares or 19.5% of the Company’s issued Common Shares.

Mr. Beaty is deemed to be a related party of Galantas by virtue of being a Substantial Shareholder of the Company (as defined in the AIM Rules for Companies). As a consequence, the Directors of the Company consider, having consulted with their nominated adviser, Grant Thornton UK LLP, that the terms of the Placing to Mr. Beaty are fair and reasonable insofar as shareholders are concerned.

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 28 February 2017.

Following Admission and the first closing, Galantas Gold Corporation’s Issued and Outstanding Common Shares will total 165,171,865.

Roland Phelps, President & CEO, Galantas Gold Corporation, said, “I am delighted to welcome new London financial institutions to our shareholder list and welcome the increased participation by Ross Beaty and other investors. The funding allows us to immediately commence underground development of the Omagh gold-mine.”

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: Telephone: (UK) +44 (0) 2882 241100



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