TORONTO, ONTARIO--(Marketwired - Jun 2, 2014) - Galantas Gold Corporation (Galantas or the Company) (TSX VENTURE:GAL)(GAL.L) announces that it has received consent from the TSX Venture Exchange for its proposed share for debt transaction.
The transaction was approved by shareholders on 16th January 2014. As announced on 8thMay 2014, Roland Phelps (President & Chief Executive) agreed to exchange a loan of GBP£718,256 for 14,365,120 new ordinary shares. Leo O'Shaughnessy (Chief Financial Officer) has agreed to exchange a loan of GBP£16,025 for 320,500 new ordinary shares. Amounts due to certain other third party creditors have also agreed to settlement of amounts owed totalling GBP£21,976, through the issue of 439,520 new ordinary shares.
Following the Debt Exchange, Mr Phelps and Mr O'Shaughnessy will hold 24.7 per cent and 0.4 per cent of the Galantas enlarged issued share capital respectively. The new shares will rank on an equal footing with the existing share capital save that they are subject to a four month hold (lock-in) period expiring 1st October 2014.
Application has been made for 15,125,140 ordinary shares to be admitted to trading on AIM which is expected on 5 June 2014. Following the Debt Conversion, Galantas Gold Corporation's Issued and Outstanding Shares will total 76,697,156.
Roland Phelps, President & CEO, Galantas Gold Corporation, said, "The transaction strengthens the Galantas balance sheet and represents a solid expression of confidence in the Omagh gold project."
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press 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 matters relating to the Omagh Gold project. 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; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas's 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 press 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 press release, except as required by law.
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.