RAB Special Situations (fka RAB)

[Tackler]

GAL Galantas Gold raises $3.5-million privately

2005-04-18 13:47 ET - News Release

Mr. Jack Gunter reports

GALANTAS CLOSES FINANCING FOR OMAGH GOLD PROJECT

Galantas Gold Corp. has closed the second tranche of a private placement. This tranche resulted in gross proceeds of $1.17-million. Totalled with the first tranche, the placing raised a total $3,503,333.

Pursuant to the private placement, Galantas issued 11.7 million units on April 14, 2005, and 23,333,333 units on April 4, 2005, as reported in news in Stockwatch on April 8, 2004, at 10 cents per unit. Each unit consists of one common share in the capital of Galantas and one-half of one common share purchase warrant of Galantas. Each whole common share purchase warrant may be exercised by the warrantholder for one common share at an exercise price of 15 cents within one year. Institutions that took part in the placement include RAB Special Situations LP and JP Morgan Fleming Asset Management (UK) Ltd. Finders' fees in the amount of $57,365, representing 5 per cent of the gross proceeds of the second tranche placement, will be paid to several parties in connection with this placement.

Proceeds of the private placement will be used for construction of the first phase of the mining project at Omagh, Co Tyrone and a targeted exploration program on the 189-square-kilometre exclusive licence area.

In addition to the equity finance raised through the private placement, Galantas has secured an offer of lease financing in the amount of 200,000 pounds from Barclays Asset Finance in order to acquire open pit mining equipment.