Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) said it will raise up to C$4mln in a private placement to fund the “exploration and development” of the Joshua Target (NYSE:TGT) in Northern Ireland.
The Canadian-based mining company entered an agreement with Canaccord Genuity (TSX:TSX:CF, LSE:CF) (Canaccord Genuity (TSX:CF, LSE:CF), Canaccord Genuity (TSX:CF, LSE:CF)) Corp, a financial services firm, and a group of agents, to issue 8.8mln units at C$0.45 a piece.
Each unit comprises of one common share in the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder to buy one common share in the capital of the company at a price of $0.55 per warrant share for a period of 30 months following the closing of the offering.
The agents will also be given an option to sell up to an additional 1.3mln shares at the offering price at any time up to 48 hours of the closing, which is expected to close at r around 25 August.
According to a statement, the offering will be made by way of private placement in each of the provinces in Canada, but the securities will not be registered under the United States Securities Act, and therefore cannot be sold in the US.