/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 11,
2022 /CNW/ - Galantas Gold Corporation (TSXV: GAL)
(AIM: GAL) (OTCQX: GALKF)
("Galantas" or the "Company") is
pleased to announce that it has entered into an amending agreement
with Canaccord Genuity Corp., on behalf of itself and a syndicate
of agents including Cormark Securities Inc. and Research Capital
Corporation (together, the "Agents"), to increase the size
of the Company's previously announced proposed "best efforts"
private placement to up to 13,333,340 units of the Company
("Units") at a price of C$0.45
per Unit (the "Offering Price") for aggregate gross proceeds
of up to approximately C$6 million
(the "Upsized Offering"). Each Unit will be comprised of one
common share in the capital of the Company (each, a "Common
Share") and one-half of one common share purchase warrant of
the Company (each whole common share purchase warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to
purchase one Common Share (a "Warrant Share") at a price of
C$0.55 per Warrant Share for a period
of 30 months following the closing of the Upsized Offering.
The Company has also granted the Agents an option, exercisable,
in whole or in part, at any time up to 48 hours prior to closing of
the Upsized Offering, which will allow the Agents to sell up to an
additional 2,000,001 Units at the Offering Price.
The Company intends to use the net proceeds of the Upsized
Offering for exploration and development at the Joshua Target as
well as for working capital and general corporate purposes.
The Upsized Offering is expected to close on or about
August 25, 2022, or such other date
as the Company and the Agents may agree, and is subject to certain
closing conditions including, but not limited to, the receipt of
all necessary approvals, including the conditional acceptance of
the TSX Venture Exchange. The Upsized Offering will be made by way
of private placement in each of the provinces of Canada pursuant to applicable exemptions from
the prospectus requirements, and in such other jurisdictions, in
each case in accordance with all applicable laws, provided that no
prospectus, registration statement or other similar document is
required to be filed in such jurisdiction. The securities issued
under the Upsized Offering will be subject to a four month hold
period under applicable Canadian securities laws.
The securities offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, or any state securities law, and may not be offered or
sold in the United States absent
registration or an exemption from such registration requirements.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale
would be unlawful.
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 news release.
The information contained within this announcement is deemed
to constitute inside information as stipulated under the
retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of
UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that
trades on the TSX Venture Exchange and the London Stock
Exchange AIM market, both under the symbol
GAL. It also trades on the OTCQX Exchange under the
symbol GALKF. The Company's strategy is to create shareholder value
by operating and expanding gold production and resources at the
Omagh Project in Northern
Ireland.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws,
including, but not limited to, the terms of the Upsized Offering,
the use of proceeds of the Upsized Offering, the timing and ability
of the Company to close the Upsized Offering, the timing and
ability of the Company to receive necessary regulatory approvals,
and the plans, operations and prospects of the Company.
Forward-looking statements are based on estimates and assumptions
made by Galantas in light of its experience and perception of
historical trends, current conditions and expected future
developments, as well as other factors
that Galantas believes
are appropriate in the circumstances. Many factors could cause Galantas'
actual results, the performance or achievements to differ
materially from those expressed or implied by the forward looking
statements or strategy, including: gold price volatility;
discrepancies between actual and estimated production,
actual and estimated metallurgical recoveries and
throughputs; mining operational risk, geological uncertainties;
regulatory restrictions, including environmental regulatory
restrictions and liability; risks of sovereign
involvement; speculative nature of gold exploration; dilution;
competition; loss of or availability of key employees;
additional funding
requirements; uncertainties regarding
planning and other
permitting issues; and defective title to
mineral claims or property. These factors and others that could
affect Galantas' forward-looking statements are discussed in
greater detail in the section entitled "Risk Factors" in Galantas'
Management Discussion & Analysis of the financial statements of
Galantas and elsewhere in documents filed from time to time with
the Canadian provincial securities regulators and other regulatory
authorities. These factors should be considered carefully, and
persons reviewing this news release should not place undue reliance
on forward-looking statements. Galantas has no intention and
undertakes no obligation to update or revise any forward-looking
statements in this news release, except as required by law.
Website: www.galantas.com
SOURCE Galantas Gold Corporation
