Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) said it entered into a further loan agreement for US$530,000 (£440,000) with Ocean Partners UK Ltd to fund the development of its underground mining operations at the Omagh gold project in Northern Ireland.
Galantas also said it exercised an option to extend a US$1.06mln loan entered into with Ocean this January for a further six months to end-January 2023, by paying Ocean an additional structuring fee of US$40,000.
"I want to thank Ocean Partners for their continued support of Galantas as we enter the next phase of growth as a gold producer while also continuing to explore to expand our high-grade resources," said chief executive Mario Stifano.
Interest on the six-month loan announced today is at an annual rate of 12% compounded monthly and is repayable in full on maturity of the loan.
In return, Ocean will receive 125,000 stock warrants in Galantas, subject to approval by the TSX Venture Exchange.
Galantas will also pay Ocean a commitment fee of US$10,000 which will be deducted from the initial proceeds of the loan. Galantas has the option to extend the loan for a further six months by paying Ocean an additional structuring fee of US$20,000.