Dual-listed Galantas Gold has received subscription agreements for the £4-million that it had set out to raise in its private placement of 80-million shares.
The company, which is building the Omagh underground mine in Northern Ireland, said on Friday that London-based investment manager Melquart had scaled back its anticipated subscription amount to £1.1-million for 22-million shares to accommodate other subscribers. The investor would own about 20.76% of the company’s total shares following the placement.
Miton Asset Management, through three of its funds, would subscribe for 50-million shares, or £2.5-million, which equates to about 16.68% of the total shares.
Galantas director Róisín Magee would subscribe for 500 000 shares and post completion of the placement, she would have about 0.17% of the total shares.
Galantas president and CEO Roland Phelps would exchange shares for debt owed to him personally, in the amount of £500 000 for 10-million shares, on the same terms as the private placement.
The underground gold mine at Omagh has started limited production of gold concentrate, from feed produced in development of the Kearney vein, and Galantas announced the first delivery of gold and silver concentrate earlier this month.
Galantas stock jumped 4.62% on Friday to 6.80p a share on the London exchange.