Galantas Gold (TSX-V, AIM: GAL) has inked a joint venture agreement with Ocean Partners UK to restart underground operations at its Omagh gold project in Northern Ireland, aiming to resume production amid rising gold prices.
The Canada-based junior called the deal a “turning point” for the high-grade project, which operated as an open-pit mine until 2013.
Under the binding term sheet, Ocean Partners will convert about $14 million in existing debt into an 80% stake in Galantas subsidiaries Flintridge Resources and Omagh Minerals, which jointly hold the Omagh asset. Galantas will retain a 20% interest, with the 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 over a one-year term. Galantas will be free-carried during this phase but may choose to participate pro rata in future funding,…
