Galantas Gold Announces Closing of US$2.6 Million Private Placement of Unsecured Convertible Debentures and Terms of Debt Settlement Transaction
By alexandreFinance
Galantas Gold Announces Closing of US$2.6 Million Private Placement of Unsecured Convertible Debentures and Terms of Debt Settlement Transaction
Galantas Gold Announces Closing of US$2.6 Million Private Placement of Unsecured Convertible Debentures
Galantas Gold Corporation, a gold producer in Northern Ireland, has successfully closed a private placement offering of unsecured convertible debentures. The offering raised a total of US$2.6 million, which will be used to fund the company’s ongoing operations and development projects.
Terms of the Offering
The private placement offering consisted of the issuance of unsecured convertible debentures at a price of US$1.00 per debenture. Each debenture has a maturity date of three years from the date of issue and carries an interest rate of 8% per annum.
The debentures are convertible into common shares of Galantas Gold Corporation at a conversion price of US$0.15 per share. The debentures also include a conversion feature that allows the company to convert the principal amount of the debentures into common shares at its option, subject to certain conditions.
The debentures are listed for trading on the Canadian Securities Exchange under the symbol “GAL.DEB”. The listing provides investors with the opportunity to trade the debentures on a secondary market, providing liquidity to their investment.
Debt Settlement Transaction
In addition to the private placement offering, Galantas Gold Corporation announced the completion of a debt settlement transaction. The company has settled outstanding debt totaling US$800,000 by issuing 6,666,667 common shares at a price of US$0.12 per share.
This debt settlement transaction has reduced the company’s overall indebtedness, improving its financial position and strengthening its balance sheet. The settlement of the debt in common shares will also increase the company’s equity base.
Use of Proceeds
The proceeds from the private placement offering and the debt settlement transaction will be used to support Galantas Gold Corporation’s ongoing operations, including the continued development of its gold mine in Northern Ireland.
The funds will also be used for exploration activities, as the company continues to identify and develop new gold deposits in the region. Galantas Gold Corporation is focused on increasing its gold production and expanding its resource base through both organic growth and strategic acquisitions.
Galantas Gold Corporation has successfully closed a private placement offering of unsecured convertible debentures, raising US$2.6 million. The company has also completed a debt settlement transaction, reducing its overall indebtedness.
The proceeds from these transactions will be used to support the company’s ongoing operations and development projects, as it aims to increase its gold production and expand its resource base. By strengthening its financial position, Galantas Gold Corporation is well-positioned for future growth and success in the mining industry.
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