Each unit comprises one common share and one common share purchase warrant, which will be exercisable at a price of C$0.40 for 24 months from the closing date of the placement.
Canadian billionaire Eric Sprott, who is renowned in the gold and silver investment community, was the leading investor in the financing. On closing, Sprott acquired 6.33 million units for consideration of C$1.9 million, giving him control over 8.6% of the issued and outstanding shares of the company on a non-diluted basis.
Michael Gentile, also an active investor in the junior mining space, acquired 4 million units for consideration of C$1.2 million, representing 5.5% of the company’s issued and outstanding shares on a non-diluted basis.
Also participating in the private placement were Melquart Ltd., a London-based investment firm and an existing shareholder, Ocean Partners UK Ltd., and Roland Phelps, Galantas’ retiring president and CEO.
Following completion of the placement, Phelps’s chief executive role will be assumed by former Cordoba Minerals Corp. executive Mario Stifano.
Galantas is currently focused on bringing the fully permitted Omagh mining operation into production. The open-pit gold mine was in operation until recently, and a processing plant has been built to produce metals concentrate from ore containing gold, silver and lead minerals.
In 2015, the company obtained planning consent to continue operations underground and is actively developing the underground mine.
Galantas is also looking to explore its 435 sqkm license area in County Tyrone, Northern Ireland, targeting discovery of over three million ounces of gold.
Shares of Galantas Gold jumped 11.1% by noon ET Wednesday following the latest funding boost. The company’s market capitalization stands at C$37.2 million.
