Pursuant to National Instrument 62-103
TORONTO, June 18 /CNW/ - On June 8, 2010 Kenglo One Limited ("Kenglo"), Third Floor, Conway House, 7-9 Conway Street, St. Helier, Jersey, JE2 3NT, acquired 21,000,000 units (each a "Unit") of Galantas Gold Corporation ("Galantas") from treasury at a price of $0.05 per Unit (the "Acquisition"). Each Unit consisted of one common share in the capital of Galantas (each a "Galantas Share") and one common share purchase warrant of Galantas (each a "Galantas Warrant"). Each Galantas Warrant is exercisable into one Galantas Share upon payment of an exercise price of $0.10 per Galantas Share at anytime until June 8, 2012.
Kenglo is wholly-owned by Benbrackk Charkit Limited ("Holdco"), which is wholly-owned by the BBCK Settlement Trust (the "Trust"), the trustee of which is Baccata Trustees Limited (the "Trustee"), which has control or direction over the Trust. The address of Trustee is as above. The beneficiaries of the Trust are Christopher Brown, his issue and his remoter issue.
As a result of the Acquisition and assuming the exercise of the Galantas Warrants, Kenglo acquired the right to exercise control or direction over 42,000,000 Galantas Shares, being 18.10% of the issued and outstanding Galantas Shares as at June 8, 2010 and being the only securities of Galantas owned or controlled by Kenglo. The Acquisition formed part of a larger offering of up to 50,000,000 Units of Galantas (the "Offering"). The first tranche of the Offering closed on June 8, 2010, pursuant to which Kenglo was the sole investor. It is expected that the second tranche of the Offering will occur following receipt of shareholder approval at a special meeting of the shareholders of Galantas to be called for the purpose of approving the Offering. If Galantas proceeds with the second tranche of the Offering, Kenglo intends to acquire an additional 24,550,000 Units from Galantas, however, has not signed an agreement with Galantas committing to the purchase.
Kenglo may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over Galantas Shares or other securities of Galantas through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.
SOURCE Galantas Gold Corporation
For further information: For further information: or a copy of the corresponding early warning report, contact: Ann Williams (tel: (44) 1534 870670)