Galantas Gold Corporation has announced a proposed non-brokered private placement of up to US$3.0 million aggregate principal amount of unsecured convertible debentures. The net proceeds of the offering will be used for exploration and development, working capital, and general corporate purposes. Each debenture will be convertible into common shares in the company at a conversion price of US$0.255 per share. The debentures will bear interest at a minimum rate of 10% per annum, with the interest rate adjusted based on the average gold price. The offering is subject to the acceptance of the TSX Venture Exchange and the securities issued will be subject to a four-month hold period under Canadian securities laws.
The debentures will be offered for sale in Canada and may also be offered for sale in the United States and other jurisdictions outside of Canada and the United States. In connection with the offering, certain finders may receive a cash finder's fee payment and non-transferable finder's warrants. The finder's warrants will be exercisable to acquire common shares in the company at the conversion price.
Galantas Gold Corporation is a Canadian public company that trades on the TSX Venture Exchange, the London Stock Exchange AIM market, and the OTCQX Exchange. The company's strategy is to create shareholder value by operating in the gold mining industry.