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Gold & silver

Galantas Gold closes placing at C$6.9mln

Initially, Galantas was looking to raise around C$4mln

Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) has closed a private placing of shares and warrant units at 0.45 cents apiece after raising around C$6.9mln (£4.5mln) gross.

The Ulster-based gold miner announced the placing earlier in August when it said it would raise around C$4mln, though the target was subsequently increased.

Melquart Ltd acquired 2.67mln units for C$1.2mln and after the placing will hold an approximate 27.4% stake.

It is deemed to be a related party of veteran Canadian mining investor Eric Sprott, who contributed C$600,000 in the placing to give him a 9.9% stake.

CEO Mario Stifano put in C$25,000 to take his stake to 0.53% while Ocean Partners chipped in C$207,500 and now holds 2.8%. Meanwhile, Michael Gentile chipped in almost C$100,000 to give him a 6% stake.

Galantas said the money would be used for exploration and development of the Joshua target at Omagh and for working capital.

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