Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

December 30, 2008 11:00 ET

Galantas Completes Private Placing for GBP282,250

TORONTO, ONTARIO--(Marketwire - Dec. 30, 2008) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL), which has a 100% interest in Ireland's only gold mine, has completed a placing of 11,290,000 units. Each unit is priced at UK Sterling Pounds Sterling 0.025 (approximately CDN$0.045) and is comprised of one common share and one warrant. Each warrant entitles the holder to purchase one common share within 12 months from closing at a price of UK Sterling Pounds Sterling 0.05 (approximately CDN$0.09). The gross amount raised by the placing is Pounds Sterling 282,250. The placing is comprised of brokered and un-brokered parts. The brokered part, which raised Pounds Sterling 162,250, was subject to an arrangement fee of 5% payable to Lewis Charles Securities, the Company's London broker. The Company has also arranged with a creditor supplying drilling services, subject to TSX Venture Exchange approval, the exchange of Pounds Sterling 75,355 of debt, on the same terms as the placement, for 3,134,200 units. The creditor is not an insider of the Company.

The placing shares (and shares exchanged for debt) are subject to a four month hold period in Ontario, Canada, which will expire April 30th, 2009. An application will be made to admit shares issued under the placing to trading on London's AIM on the same day that they become free trading on the TSX Venture Exchange.

Amongst the placees is JP Morgan Fleming Global Natural Resources Fund (JPM). The Company has been advised that, following the placing, JPM will hold 18,174,501 shares in the Company, which is approximately 9.56% of the total shares issued and outstanding following the placement and completion of the debt for share exchange.

Mr. Roland Phelps (President and Chief Executive of the Company) has subscribed for 3,200,000 units in the placing. This increases the number of shares owned by him, directly or indirectly, in the Company to 35,538,980 shares, which is approximately 18.695% of the total shares issued and outstanding following the placing and completion of the debt for share exchange. Further details of his holdings are available on www.sedi.ca.

The Company intends to use the funds from the placing to purchase capital equipment and for general working capital purposes.

Galantas Gold Corporation Issued and Outstanding Shares following the placing total 186,965,855 and following the shares for debt exchange, which is subject to TSX Venture Exchange approval 190,100,055.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Galantas Gold Corporation
    Jack Gunter P.Eng
    Chairman
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Roland Phelps
    President & Chief Executive Officer
    +44 (0) 2882 241100
    Email: info@galantas.com
    Website: www.galantas.com
    or
    Blomfield Corporate Finance Limited
    Nick Harriss
    +44 (0) 207 489 4500
    or
    Lewis Charles Securities
    Kealan Doyle
    +44 (0) 207 456 9100
    or
    Lewis Charles Securities
    Nicholas Nicolaides
    +44 (0) 207 456 9100