Galantas Gold closes private placement

Mineral explorer Galantas Gold said has closed its CA$2.4m (£1.18m) private placement it had launched earlier this month.

The London-listed group issued 20m units at a price of 12 cents each, with each comprising one share and one share purchase warrant, exercisable into one share for the 12 months at a price of 16 cents.

In a statement released on Monday, Galantas said Pan American Silver’s chairman Ross Beaty has secured 16m shares, meaning he will hold a 14.9% stake in the company, which could increase to 25.1% should he choose to exercise all of his options.

"Ross Beaty has an impressive and well known investment record,” said group president and chief executive group Roland Phelps.

“I'm delighted that he has chosen to invest in our operation. It is a vote of confidence.”

The miner said the net proceeds will be used for working capital purposes and for a number of projects, including the development of the underground Omagh gold mine in County Tyrone, Northern Ireland.

Galantas Gold shares were up 2.09% to 5.87p at 1604 BST.