LONDON (ShareCast) - (Sharecast News) - Galantas Gold announced a private placement on Tuesday, to raise up to CAD 4m (£2.57m) for the exploration and development of the Joshua Target.
The AIM-traded firm said it had entered an agreement with Canaccord Genuity to place up to 8,888,890 units at a price of 45 Canadian cents each.

It said each unit will consist of one common share in Galantas, and half of one common share purchase warrant.

Each full warrant would entitle the holder to purchase one common share for 55 cents each, for 30 months following the closing of the offering.

The company said it had also granted the agents an option, exercisable in whole or in part at any time up to 48 hours before the closing of the offering, allowing them to sell up to an additional 1,333,334 units at the offering price.

"The company intends to use the net proceeds of the offering for exploration and development at the Joshua Target, as well as for working capital and general corporate purposes," the board said in its statement.

Galantas said the offering was expected to close on or around 25 August.

At 1323 BST, shares in Galantas Gold were up 1.03% in London, at 29.03p.

Reporting by Josh White at Sharecast.com.

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