9th Jun 2025 13:34
(Alliance News) - Galantas Gold Corp on Monday said it has entered a binding term sheet with Ocean Partners UK Ltd for a joint venture to restart the high-grade Omagh gold project in Northern Ireland, while also announcing a shares-for-debt transaction.
The gold mining company focused on Northern Ireland and Scotland said Berkshire, England-based Ocean Partners will convert about USD14 million of existing loans into an 80% stake in Galantas subsidiaries Flintridge Resources Ltd and Omagh Minerals Ltd, which together own the Omagh project.
Galantas will retain 20% interest and be free carried through an initial USD3 million investment by Ocean Partners to fund exploration, planning and administrative costs.
Galantas also granted Ocean Partners the option to invest a further USD5 million for development in a second phase. If Galantas is diluted below a 10% interest or opts to convert its stake, it will receive a net smelter return royalty of 1.5% to 3%, with partial buyback rights for Flintridge.
Galantas called the transaction "a turning point" that will strengthen its balance sheet and enable it to benefit from renewed gold production. Ocean Partners will act as project operator, and a drill campaign will target the Joshua and Kearney veins at Omagh.
The proposed deal, which constitutes a fundamental change of business under AIM rules, is subject to shareholder approval, definitive documentation and regulatory clearances.
In a related move, Galantas will convert USD1.1 million of debt held by major shareholder Melquart Ltd into 17.6 million shares at a discounted price. Melquart, which already holds 24.5%, will increase its stake to about around 35% post-conversion, though this also requires shareholder approval.
Galantas will hold a combined annual general and special meeting on August 5 to approve the JV and share issuance.
Galantas shares were up 7.3% at 5.90 pence in London on Monday afternoon.
By Eva Castanedo, Alliance News reporter
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