Galantas Gold enters JV with Ocean Partners to develop Omagh Gold Project
Published by Jess Watts,
Editorial Assistant
Global Mining Review,
Ocean Partners will exchange approximately US$14 million (£10.3 million) in existing loans for an 80% interest in Flintridge Resources Ltd. and an 80% interest in Omagh Minerals Ltd., subsidiaries of Galantas which together own the Omagh Project. The remaining 20% interest in Flintridge and 20% interest in Omagh Minerals will be retained by Galantas. Following the proposed transaction, Ocean Partners will have the option to convert the approximately US$1 million (£738 481) of remaining debt into a 0.001% interest in Flintridge at any time after mining has restarted on the Omagh Project.
Ocean Partners will invest an initial US$3 million (£2.2 million) in the Omagh Project for exploration, a restart plan, and general and administrative costs for a period of up to one year. After this, Ocean Partners will have the option to invest an additional US$5 million (£3.7 million) for exploration and commissioning a development programme for a period of up to one year. Galantas will be free carried on the initial US$3 million (£2.2 million) investment and will have the option to invest its pro-rata share on future investments.
Mario Stifano, CEO of Galantas, commented:
“We are very pleased to enter into the proposed transaction with Ocean Partners, a long-standing stakeholder who recognises the district-scale and high-grade potential of the Omagh Project. 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 project in Scotland. Upon closing of the proposed transaction, the joint venture intends to commence a drill programme targeting the high-grade zones at the Omagh Project’s Joshua Vein and test the northern extension of the Kearney Vein.”
Read the article online at: https://www.globalminingreview.com/mining/10062025/galantas-gold-enters-jv-with-ocean-partners-to-develop-omagh-gold-project/
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