Galantas Gold Corporation GALANTAS CLOSES PRIVATE PLACEMENT (0489Y)

TIDMGAL

RNS Number : 0489Y

Galantas Gold Corporation

01 December 2017

GALANTAS GOLD CORPORATION

TSXV and AIM: Stock Symbol - 'GAL'

GALANTAS CLOSES PRIVATE PLACEMENT

Date : December 1, 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 the closing of the private placement to a gross amount of CDN$ 1,165,857 (UKGBP682,859), in line with the terms and proposed placing price previously outlined in the disclosure dated 15 November 2017 (the "Placing").

The Placing was closed on November 30, 2017, pending delivery of final documentation, for 16,655,099 common shares of no par value ("Common Shares"). United Kingdom placees have subscribed at a price of UKGBP0.041 per Common Share. Canadian placees have subscribed at a price of CDN$0.07 per Common Share.

A four month hold period will apply. The hold period will expire on March 31st, 2018. 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 6,097,561 Common Shares, which, in addition to the shares it already holds, gives rise to a holding of 15.1% of the Company's issued Common Shares.

Mr. Ross Beaty has subscribed for 2,914,959 Common Shares, which, in addition to the shares he already holds, gives rise to an 18.7% holding.

Mr. Roland Phelps, President & CEO, Galantas Gold Corporation, has subscribed for 1,219,512 Common Shares, which, in addition to the shares he already holds, gives rise to an 18.4% holding.

Mr. Beaty, Mr. Phelps and Melquart are deemed to be related parties of Galantas by virtue of being Substantial Shareholders 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 these parties 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 December 5, 2017.

Following Admission and the closing, Galantas Gold Corporation's Issued and Outstanding Common Shares will total 187,549,186.

The Placing was conducted on a part-brokered basis. Fees and commissions were a total of CDN$44,287 (GBP25,939).

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

Roland Phelps, President & CEO, Galantas Gold Corporation, said, "I am delighted to welcome the continued support from our shareholders. The funding allows us to continue the acceleration of underground development of the Omagh gold-mine.

The Omagh team is continuing to make good progress with underground development, which now totals about 132 metres. Shotcrete equipment delivered as part of a rental purchase deal recently announced has been delivered and successfully integrated into the operation. The first of two, new, underground development drill rigs, which are also part of the rental purchase arrangement, is expected to be delivered in January 2018."

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: [e-mail] Telephone: (UK) [phone]

Website: www.galantas.com

Grant Thornton UK LLP (Nomad)

Philip Secrett, Richard Tonthat: Telephone: [phone]

Whitman Howard Ltd (Broker & Corporate Adviser)

Nick Lovering, Grant Barker: Telephone: [phone]

(UK) DEALING NOTIFICATION FORM

FOR USE BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY AND THEIR CLOSELY ASSOCIATED PERSONS

 
1.    Details of the person discharging managerial 
       responsibilities/person closely associated 
a)    Name:                             Roland Phelps 
      Reason for the notification 
  2. 
a)    Position/status:                  President and Chief 
                                         Executive Officer 
                                         and Director 
b)    Initial notification/Amendment:   Initial Notification 
 
  3.    Details of the issuer, 
        emission allowance 
        market participant, 
        auction platform, 
        auctioneer or auction 
        monitor 
a)    Name:                             Galantas Gold Corporation 
b)    LEI:                              LEI: 213800JKVPLLKO4KVB93 
 
  4.    Details of the transaction(s): 
        section to be repeated 
        for (i) each type 
        of instrument; (ii) 
        each type of transaction; 
        (iii) each date; and 
        (iv) each place where 
        transactions have 
        been conducted 
a)    Description of the                Common Shares of 
       financial instrument              nil par value 
       type of instrument 
       Identification Code               ISIN: CA36315W2022 
b)    Nature of the transaction         Purchase of shares 
                                         in a private placement 
c)    Price(s) and volume               CDN$0.07 1,219,512 
                                         shares 
d)    Aggregated information            1,219,512 shares 
                                         purchased at CDN$ 
                                         0.07 per share 
e)    Date of the transaction           30(th) November 2017 
f)    Place of the transaction          Outside a trading 
                                         venue 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 01, 2017 02:01 ET (07:01 GMT)