Galantas Gold (TSX-V, AIM: GAL) has sold its remaining 20% indirect interest in Northern Ireland’s Omagh gold project to Ocean Partners UK for $5 million, completing its exit from the long-troubled asset as it shifts its focus to Chile.
About $3.26 million of the consideration was used to settle debt Galantas owed Ocean Partners under a promissory note and other obligations, with the remainder paid in cash. Galantas valued the 20% interest at about $4.1 million as of June 30.
“The completion of this transaction (…) allows Galantas to focus its resources on advancing its portfolio of gold and copper assets in Chile,” CEO Mario Stifano said in a statement.
The sale completes a restructuring that had already handed Ocean Partners control of Omagh. Under the earlier agreement, Ocean Partners converted about $14 million of existing debt into an 80% stake in Galantas subsidiaries Flintridge Resources and Omagh Minerals, which jointly hold the project.
Omagh struggles
Omagh has faced years of operational setbacks tied to security requirements, financing constraints and the pandemic.
Underground development was paused in 2017 until the Police Service of Northern Ireland (PSNI) could increase the availability of anti-terrorism security for blasting operations. Blasting was halted again in the late 2019, mainly because of PSNI limitations, before ore production was suspended in 2020 amid insufficient funding and the impact of the pandemic.
Gold miners operating in Northern Ireland reached an agreement with the government in 2021, providing free policing related to the handling of explosives, helping companies accelerate sampling and project development.
Despite the change, Galantas ultimately moved to reduce its exposure to Omagh rather than commit additional resources to the project.
Chile focus
Following the transaction, Galantas holds no equity interest in Omagh and has given up the right to convert the disposed 20% stake into a 3% net smelter return royalty.
The exit leaves the Canada-based junior positioned to concentrate its resources on its Chilean gold and copper portfolio, including the Andacollo gold project and the Indiana project.
Source: https://www.mining.com/galantas-exits-omagh-gold-project-in-5m-deal/
