Galantas Gold proposes private share placement

(Sharecast News) - Gold producer and explorer Galantas Gold Corporation announced a proposed private placement of shares on Friday.The AIM and TSX-traded firm said the placement would be for a maximum of 30 million shares, at an issue price of 4.2p per share for maximum gross proceeds of £1.26m.It said a four month plus one day hold period would apply to the shares, and the private placement would be subject to TSXV and regulatory approval.The net proceeds to be raised were intended to be used for working capital purposes, and to continue development of an underground mine on the Omagh property."The Omagh underground gold mine has commenced limited production of gold concentrate, from feed produced in development of the Kearney vein," Galantas explained in its statement."The company expects to raise further funds in due course to enable full production status to be reached."