Galantas Gold (TSX-V, AIM: GAL) has signed a joint venture agreement with Ocean Partners UK to restart underground mining at its Omagh gold project in Northern Ireland, aiming to capitalize on rising gold prices.
The Canadian junior miner called the deal a “turning point” for the high-grade asset, which operated as an open-pit mine until 2013.
Under the agreement, Ocean Partners will convert about $14 million of existing debt into an 80% stake in Galantas subsidiaries Flintridge Resources and Omagh Minerals, which jointly own the Omagh project. Galantas will retain a 20% interest with an option to convert it into a royalty.
Ocean Partners will also invest an initial $3 million to fund exploration, restart planning, and cover administrative costs for one year. Galantas will be carried during this phase but may participate pro rata in future funding rounds, including a potential second-phase investment of $5 million.
Additionally, Ocean Partners can convert $1 million of remaining debt into a 0.001% stake in Flintridge once mining restarts.
“This deal allows Galantas to benefit from renewed production at Omagh while strengthening the company’s balance sheet,” CEO Mario Stifano said. He noted that Galantas will receive gold output after operations resume and continue advancing its Gairloch gold-copper project in Scotland.
The joint venture plans to launch a drilling program targeting high-grade zones such as the Joshua Vein and the northern extension of the Kearney Vein.
The transaction requires shareholder approval and is classified as a “fundamental change of business” since Galantas is transferring control of its main operational assets. Despite this, the company will remain listed on London’s AIM and will not be considered a cash shell.
If approved, Galantas will shift its focus primarily to the Gairloch project in Scotland, where it plans a maiden resource estimate and drilling.
Galantas has a one-year option to convert its 20% Omagh stake into a 3% net smelter return (NSR) royalty. Ocean Partners holds a buyback right for half that royalty at $8 million. If Galantas declines and its stake falls below 10%, it will convert automatically to a 1.5% NSR royalty, half of which Ocean Partners can repurchase for $4 million.
Ocean Partners CEO Brent Omland is also a Galantas director and a shareholder and director of Ocean Partners’ parent company, making the two entities closely linked under EU market abuse rules.
Omagh’s underground development was paused in 2017 due to security concerns until the local police (PSNI) could increase anti-terrorism support. Blasting was halted again in late 2019 due to police restrictions, and ore production stopped in 2020 amid funding issues and the pandemic.
In 2021, gold miners in Northern Ireland reached an agreement with the government for free policing related to explosives handling, allowing faster sampling and project progress.
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