Galantas Gold Corp (CVE:GAL)(LON:GAL) has completed its previously announced placement of shares at C$0.30 per unit, raising just shy of C$8mln.
Each unit comprises one share and one warrant exercisable into one additional share at C$0.40.
There is a four month and one day hold period on the trading of securities issued in connection with this financing.
Eric Sprott, the well-known Canadian resources investor, acquired 6.3mln units for C$1.9mln, through his vehicle 2176423 Ontario Ltd, giving him an 8.6% stake in Galantas.
Other major investors included former money manager Michael Gentile, Melquart Ltd, a London-based investment firm and an existing shareholder, Ocean Partners UK, and Galantas outgoing chief executive Roland Phelps.
In connection with closing, Roland Phelps has retired as Galantas' president and chief executive and as a member of the board of directors.
The chief executive’s role will be taken by Mario Stifano, an experienced mining executive who has raised significant capital for a number of mining and resource companies in exploration, development and production such as Lake Shore Gold Corp.
"We are thrilled to have closed this private placement with the support of such a strong and impressive investor base,” said Stifano.
“We are now eager to ramp up operations and exploration to expand the known resources to depth and on strike, as well as identify new drill targets. I would like to take the opportunity to thank Mr. Phelps for his significant contributions to the company, and I look forward to working with the board and the expanded management team to drive value creation for our stakeholders."
Separately, the company has appointed Brendan Morris as chief operating officer. Morris is a chartered mining engineer with more than 40 years of experience in mining and quarrying in Ireland, United Kingdom, United Arab Emirates and Canada.
Also new to the board is Brent Omland, a Canadian Chartered Accountant with 15 years' experience in the mining, metals and trading sectors. He has held roles with Ivernia Inc., Enirgi Metals Group and Teck. He is currently chief financial officer of Ocean Partners.
Ron Alexander has stepped down from the board.
"I am pleased to leave Galantas in good hands,” said Roland Phelps.
“The new capital and leadership will allow the true potential of this exciting property to be realized. I will continue to provide consulting services to management and the board to ensure a smooth transition."
Meanwhile, the existing offtake agreement with Ocean Partners has been extended from a minimum total of 50,000 tonnes of concentrate deliveries to a minimum total of 150,000 tonnes and marketed at market rates.
In addition, the maturity dates of various loan notes have been extended.