Dual-listed Galantas Gold on Monday announced a proposed private placement to raise up to C$6.6-million to bring its Omagh gold mine, in Northern Ireland, into full production.
Between 17-million and 22-million units would be on offer at C$0.30 each and Galantas said that it had commitments to reach the minimum gross proceeds from the private placement of C$5.1-million.
The company’s largest shareholder Melquart, CEO Roland Phelps and offtake partner Ocean Partners UK would participate in the placement.
Ocean Partners UK would subscribe for a minimum of 1 666 667 units of the placement, for a subscription of C$500 000, and agreed to purchase any additional units up to a maximum of C$4.5-million required to reach the minimum gross proceeds from the private placement.
Galantas also announced that, upon closing of the placing, Phelps would retire as CEO and board member and that Mario Stifano would assume the role of CEO.
Stifano is an experienced mining executive who has raised more than $700-million in capital for mining companies such as Lake Shore Gold, now part of Kirkland Lake Gold, Cordoba Minerals and Dore Copper Mine. It is expected that Stifano would be nominated as an Ocean Partners representative on the board following regulatory approval.
On the closing date, Ocean Partners nominee, Canadian chartered accountant Brent Omland, would be appointed a director to replace Phelps on the board.
Stifano said in a statement that he intended to introduce a “bolstered and experienced” operating team for Galantas.
The company would also follow up on the exploration potential of numerous veins, including the Joshua vein that intersected 21.6 m of 9.9 g/t gold on the major structure that hosts the world-class Dalradian gold project, as well as New Found Gold’s recent Queensway discovery.