JOHANNESBURG (miningweekly.com) – Aim- and TSX-V-quoted Galantas Gold has secured more funds for the further development of its Omagh mine, in Northern Ireland.
The firm’s operating subsidiary, Flintridge Resources, has signed a concentrate prepayment agreement, or loan facility, for $1.6-million with Ocean Partners UK and increased its on-demand loan facility with G&F Phelps, a company owned by Galantas CEO Roland Phelps, by £600 000 to £2.15-million.
The interest margin of the Ocean loan facility is set at 12-month London Inter-bank Offered Rate (Libor) plus 8.75%. No interest shall be charged for six months and repayments shall start against deliveries in 2019. There is a $25 000 arrangement fee on completion. The facility will mature at the end of December 2020.
The G&F Phelps loan facility’s interest charged has increased to 6.75% plus 12 month Libor.
As consideration for providing the Ocean loan facility, the lender will receive upon closing of the loan agreements 15-million bonus warrants, which will be exercisable into one common share of Galantas at C$0.1575 a bonus share, being 150% of the TSX-V closing price on Wednesday.Creamer Media Senior Researcher and Deputy Editor Online