GlobalData
2 min read
In This Article:
Galantas Gold has signed a joint venture (JV) agreement with Ocean Partners UK to restart operations at the Omagh gold project in Northern Ireland.
Under the binding term sheet, Ocean Partners will convert around $14m (£10.38m) in existing debt into an 80% stake in Galantas subsidiaries Flintridge Resources and Omagh Minerals.
Flintridge and Omagh Minerals jointly own the Omagh project, which is located within a 189km² licence area approximately 1.5 hours’ drive west of Belfast.
Galantas will retain a 20% interest, with the option to convert it into a royalty.
Ocean Partners will invest approximately $3m in the Omagh project for exploration and restart plans, with Galantas being free carried on this investment.
Galantas will be allowed to participate pro rata in future funding including a potential second-stage investment of $5m (C$6.85m).
Galantas Gold CEO Mario Stifano expressed enthusiasm about the partnership, stating: “The proposed transaction represents a turning point in the Omagh Project’s development, enabling Galantas to benefit from a recommencement in production amid rising gold prices, while also strengthening the company's balance sheet. The company will have the benefit of receiving gold ounces once the Omagh Project is restarted, while also advancing the Gairloch high-grade gold and copper VMS [volcanogenic massive sulphide] project in Scotland.”
Upon closing, the JV plans to start a drill programme targeting the Joshua Vein and the northern extension of the Kearney Vein, the two key zones at Omagh with high-grade potential.
The agreement includes a provision for Galantas to convert its ownership interest into a net smelter return royalty, with buy-back options available to Flintridge. The transaction is subject to various conditions including board and shareholder approvals.
Galantas has already completed more than 3km of underground mine development. Test stoping has been completed with six stopes mined and backfilled using a narrow vein, modified Avoca longhole open stoping method.
A total of 3,175 tonnes of mineralised material was successfully mined from the six stopes.
"Galantas signs JV deal to restart Omagh gold project in Ireland" was originally created and published by Mining Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
