$85 Million Private Placement
Galantas Gold Corporation announced a brokered private placement to raise up to $85 million through the sale of approximately 154,546,000 units at $0.55 per unit, with each unit comprising one common share and one-half of a warrant exercisable at $0.80 for 24 months. The company also has an option to sell an additional 27,273,000 units for up to $15 million. Proceeds will fund exploration and development at the Indiana Gold and Copper Project and the Andacollo Gold Project in Chile, along with general corporate purposes. Insiders are expected to participate, and the company will rely on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101. The offering is expected to close on May 28, 2026, subject to regulatory approvals.
Select text to share a quote on X · sign in to keep highlights & notes in your GAL notes
TORONTO, May 11, 2026 -- Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQB: GALKF) ("Galantas" or the "Company") is pleased to announce that it intends to raise up to $85 million (the "Offering") pursuant to a brokered private placement of up to 154,546,000 units of Galantas (each, a "Unit"), on a "best efforts" agency basis, at a price of $0.55 per Unit (the "Issue Price"). Canaccord Genuity Corp. will act as sole bookrunner and lead agent (the "Agent"), in connection with the Offering.
Each Unit will be comprised of one common share of the Company (a "Galantas Share") and one-half of one Galantas Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Galantas Share for $0.80 for a period of 24 months from the closing date of the Financing. The Galantas Shares and Warrants issuable in connection with the Offering will be subject to a statutory hold period in Canada which extends to four months and one day after the closing of the Offering (the "Hold Period"). Starting effective the day after the Hold Period, in the event that the closing price of the common shares of the Company on the TSX Venture Exchange (the "TSXV") for ten (10) consecutive trading days exceeds $1.00, the Company may, within 5 business days of the occurrence of such event, deliver a notice (including by way of a news release) to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice.
The Company has granted the Agent an option, which will permit the Agent to sell up to 27,273,000 additional Units at the Issue Price for additional gross proceeds of up to $15 million.
The net proceeds from the Offering will be used to fund exploration and development work on the Indiana Gold and Copper Project and the Andacollo Gold Project in Chile, and for general corporate and working capital purposes.
Closing of the Offering is expected to occur on May 28, 2026, or such other date as agreed between the Company and the Agent and is subject to obtaining the required approvals of the TSXV and satisfaction of customary closing conditions.
Certain insiders of the Company are anticipated to participate in the Offering, and such participation by insiders will constitute a related party transaction as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on exemptions from the formal valuation and minority shareholder requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the securities to be issued under the Offering nor the consideration to be paid by insiders of the Company will exceed 25% of the Company's market capitalization.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.