Galantas Gold Corp. (TSX-V, LSE-A: GAL) has entered into a pivotal joint venture agreement with Ocean Partners UK to revive underground mining operations at the Omagh gold project in Northern Ireland.
Under the binding agreement, Ocean Partners will convert approximately $14 million in existing loans into an 80% stake in Galantas subsidiaries Flintridge Resources and Omagh Minerals, which together control the Omagh asset. Galantas will retain a 20% stake, with an option to exchange it for a royalty interest at a later stage.
Ocean Partners will also provide an initial $3 million to finance exploration activities, mine restart planning, and administrative costs over the first year. During this period, Galantas will be carried at no cost but may elect to contribute proportionally to future funding rounds, including a potential follow-up investment of $5 million. Ocean Partners will serve as the project operator, with a drilling campaign planned to target high-grade zones such as the Joshua and Kearney veins.
According to Galantas CEO Mario Stifano, this deal is a “turning point” for the company, improving its financial position while enabling it to benefit from renewed gold production at Omagh. If Galantas’ interest drops below 10% or if it chooses to convert its holding, its stake will automatically convert to a net smelter return royalty of 1.5% to 3%, with Ocean Partners retaining certain buyback rights.
The transaction, which requires shareholder approval, marks a fundamental shift in Galantas’ operations as it effectively transfers control of its main asset. The company also plans to advance its Gairloch gold-copper project in Scotland, with a maiden resource estimate and drilling scheduled.
The Omagh project, located about 110 km west of Belfast, has a history of both open-pit and underground mining, though commercial production has not yet been achieved. Previous development was hindered by security and funding challenges, but the new joint venture aims to overcome these setbacks and capitalize on favorable gold market conditions.
