Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) said it entered into a loan agreement for US$1.06mln with Ocean Partners UK Ltd.
The fresh funds will be used for further development of the Omagh gold project in Northern Ireland and for working capital, the company said in a statement.
The loan bears an interest rate of 10% and is payable six months from the date of issue.
READ: Galantas Gold reports high grade intersection from latest Omagh drilling
As part of the loan agreement, Ocean will receive 250,000 warrants of Galantas, exercisable into one Galantas common share for a period of 12 months at a price equal to the closing share price on the TSX Venture Exchange on the date of issue of the loan.
Galantas will also pay Ocean a structuring fee of US$20,000, which will be deducted from the initial proceeds of the loan, and a consulting fee of US$40,000 that will be invoiced separately by Ocean.
Galantas has an option to extend the loan for a further six months by paying Ocean an additional structuring fee of US$40,000.
"I want to thank Ocean Partners for their continued, long-term support of Galantas, and their willingness to work with us to achieve production at the end of Q1 this year," said Mario Stifano, CEO of Galantas.