Galantas Gold Corporation (LON:GAL) has arranged a £1mln convertible debenture with its largest shareholder.
Canadian firm Melquart owns 24% of the Ulster-based gold miner and has fully subscribed for the debenture, which carries a coupon of 15% per annum and converts into shares at a 25% discount to the market price.
A ten for one share consolidation is proposed with other major shareholders including Ross Beaty, Miton and chief executive Roland Phelps agreeing to the proposal.
If it converts, Melquart can hold a maximum 56.7% stake.
Galantas has applied for an extension to blasting at the Omagh gold mine and is also exploring opportunities for a sale to a development partner.