Galantas Gold Corporation (TSXV & AIM: GAL) has entered into a further loan agreement for US$530,000 with Ocean Partners UK Ltd.
The Loan is to be used to fund the development of the underground mining operations at the Omagh Gold Project in Northern Ireland and working capital.
The Loan is repayable six months from the date of closing of the issue of the Loan and will bear interest at an annual rate of 12% compounded monthly and repayable in full on maturity of the Loan.
As consideration for providing the Loan, Ocean will receive, upon the Closing, 125,000 warrants of Galantas – subject to acceptance by the TSX Venture Exchange.
In connection with the Loan Agreement, Galantas will also pay Ocean a commitment fee of US$10,000 which will be deducted from the initial proceeds of the Loan. Galantas may, at its option extend the Loan for a further six months by paying Ocean an additional structuring fee of US$20,000.
The company has also confirmed that it exercised its option to extend the US$1.06 million loan entered into with Ocean on January 31, 2022 for a further six months, to January 31, 2023, by paying Ocean an additional structuring fee of US$40,000 in accordance with the terms of that loan.
“I want to thank Ocean Partners for their continued support of Galantas as we enter the next phase of growth as a gold producer while also continuing to explore to expand our high-grade resources,” Mario Stifano, CEO of Galantas, said.
For further information please visit: https://galantas.com/
