JOHANNESBURG (miningweekly.com) – The owner of Northern Ireland’s only producing gold mine has raised about C$1.17-million (or £682 859) in a private placement, which the company plans to use to accelerate underground development.
TSX-V and Aim-listed Galantas Gold closed the private placement on Thursday for 16 655 099 common shares of no par value. UK placees have subscribed at a price of £0.041 a share and Canadian placees at a C$0.07 a share.
UK-based investment institution Melquart subscribed for 6 097 561 shares, which gives it a shareholding in the company of 15.1%. Ross Beaty subscribed for 2 914 959 shares, giving rise to an 18.7% holding and Galantas CEO Roland Phelps subscribed for 1 291 512 shares, which in addition to the shares he already holds, gave rise to an 18.4% holding.
Galantas will use the proceeds of the placing for working capital and to continue underground development at Omagh, which now totals about 132 m.
“Shotcrete equipment delivered as part of a rental purchase deal recently announced has been delivered and successfully integrated into the operation. The first of two, new, underground development drill rigs, which are also part of the rental purchase arrangement, is expected to be delivered in January 2018," Phelps reported.
The company is ramping up underground operations after the openpit site was exhausted.