Galantas Gold Corp (LON:GAL CVE:GAL) has revealed plans for a private placement to raise funds for the development of its Omagh gold mine in Northern Ireland.
The AIM-listed miner said the placement was for a maximum of 30mln shares at an issue price of 4.2p each, a 20% discount on the last close price of 5.2p, with gross proceeds to reach a maximum of £1.26mln.
READ: Galantas Gold announces channel sample results from Kearney vein
Galantas said it expected insiders to participate in the placing, the net proceeds of which would be used as working capital to continue development of the underground mine at its Omagh property, adding that it expected to raise further funds “in due course” to enable full production at the project.
The firm restarted production of concentrate at the mine in late August after it struck the main Kearney gold vein in June, with assays of 12.8 grams per tonne of gold revealed in the results of channel sample and grab samples.