GALANTAS SCHEDULES SHARE CONSOLIDATION AND UPDATES ON OPERATIONS

 

TORONTO, April 02, 2020 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the “Company”), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland’s Omagh gold mine, announces that effective at the opening of markets on April 9, 2020, the Company will complete the consolidation of its common shares (the "Shares") on the basis of one (1) post‐consolidated Share for every ten (10) pre‐consolidated Shares held (the "Consolidation"). The new CUSIP number will be 36315W301 and the new ISIN number will be CA36315W3012. The Company's name and stock symbol will remain unchanged following the Consolidation.

The Consolidation was approved by shareholders at a special meeting of shareholders (the “Special Meeting”) held on February 18, 2020 and is subject to the approval of the TSX Venture Exchange. No fractional Shares will be issued under the Consolidation as fractional Shares will be rounded to the nearest whole number in line with the authorities approved at the Special Meeting. The Company currently has 323,216,217 common shares issued and outstanding and immediately following the Consolidation will have a maximum of 32,322,622 common shares issued and outstanding.

Letters of transmittal with respect to the Consolidation will be mailed shortly to all shareholders of the Company on the main Canadian register of the Company. All shareholders who submit a duly completed letter of transmittal along with their respective share certificate(s) representing the pre-consolidated Shares to the Company's transfer agent, TSX Trust Company, will receive a certificate representing the post-consolidated Shares.

Shareholders on the Jersey sub-register of the Company will automatically receive, expected to be within 7 days, a new share certificate representing post-consolidation Shares, with the former certificates being null and void. Holders of Depositary Interests will automatically have holdings adjusted accordingly.

The Consolidation will become effective at close of business on 8 April 2020. Application will be made for 32,322,622 common shares to be admitted to trading on AIM. Dealings in the new common shares are expected to commence on or around 08:00 (UK time) on 9 April 2020, with CREST holdings updated the same morning.

Operational Update : Galantas Gold Mine, Omagh, Northern Ireland

The Company continues to meet safety and environmental standards.

Following UK government guidelines regarding Covid-19, some non-essential staff are, in a few cases, working from home and other non-essential staff at the operation are on furlough. A small number of essential staff are continuing to provide safety, security, maintenance and fulfilling statutory obligations on site. Essential staff are to operate under the health protocols advised by the authorities.

Processing (milling) operations have temporarily ceased. A potential re-start has been provisionally scheduled in 4 to 6 weeks, subject to health advice. Concentrate production will be adversely affected and the Company will apply for potential UK government loan and grant support under the two schemes available (Furlough & CBIL).

Blasting

Confirmation has been received from the Police Service of Northern Ireland (PSNI) in regard to satisfaction of certain secure storage and handling protocols required for an increase in blasting to a commercial level. Some other issues, regarding financial matters, are being progressed and the Company is endeavoring to achieve an acceptable resolution in co-operation with PSNI at the earliest date.  

Potential Corporate Actions

A number of parties have expressed an interest in the Company in terms of a potential purchase or joint venture. Due diligence is being carried out on a remote basis at present but full assessments will inevitably be delayed during the current health emergency as travel is restricted.

Roland Phelps, President & CEO, Galantas Gold Corporation, said, “The Company has made significant progress in the resolution of blasting issues which were critical to the expansion of development and production and expects to make further progress in this regard in the coming quarter.”

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Enquiries : Galantas Gold Corporation
Roland Phelps C.Eng – President & CEO
Email: info@galantas.com Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com

Grant Thornton UK LLP (AIM Nominated Advisor)
Philip Secrett, Richard Tonthat: Telephone: +44(0)20 7383 5100

Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker: Telephone: +44(0)20 7659 1234