Proactive Investors - Galantas Gold Corp (LON:GAGO) has entered into a loan agreement for £347,000 with London-based family office Melquart Ltd.
The loan is to be used for the initial lease payment for the Gairloch gold and base metals project in Scotland.
The 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. Each warrant will be exercisable into one common share of Galantas for a period of 24 months from the closing at an exercise price equal to the closing price of the company's common shares on the TSX Venture Exchange on February 10, 2023.
"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,” said Mario Stifano, chief executive of Galantas Gold.
Melquart is deemed to be a related party of Galantas, as it is already a substantial shareholder of the company.