Galantas Gold Corp on Monday said it has entered a £347,000 loan agreement with London-based family office Melquart Ltd.
The Northern-Ireland focused gold mining company said the loan will be used for the initial lease payment for the Gairloch project in Scotland.
In January, Galantas agreed to buy the Gairloch project in Scotland from the owners of the Gairloch Estate. The covers a 217 square kilometre mineral licence, including the Gairloch schist belt.
Galantas said the project would be acquired for an initial payment of £347,000, with annual payments of £69,400 for each lease year after the fifth year of the lease.
The £347,000 loan is payable 24 months from the date of the agreement and will bear interest at an annual rate of 12% payable upon repayment of the loan. As consideration for providing the loan, Melquart will receive 100,000 warrants of Galantas.
Chief Executive Mario Stifano said: ‘I want to thank Melquart for their continued confidence in Galantas, and their willingness to support us in our mission to unlock further value for shareholders by expanding our exploration footprint to the high-potential, Gairloch gold-bearing volcanogenic massive sulphide district in Scotland, that has largely been underexplored.’
Shares in Galantas were flat at 26.10 pence each in London early Monday.
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