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Galantas sells its remaining Omagh stake in $5M deal
Galantas used about $3.3 million of the proceeds to settle debt it owed Ocean Partners UK under a promissory note, completing its exit from the Northern Ireland project.
Galantas Gold has sold its remaining 20% indirect interest in Northern Ireland’s Omagh gold project to Ocean Partners UK for $5 million, completing the company’s exit from the long-troubled asset as it shifts its focus to Chilean gold and copper projects, Mining.com reports.
About $3.26 million of the consideration will be used to settle debt Galantas owed Ocean Partners under a promissory note and other obligations, with the remainder paid in cash. Galantas previously valued the 20% interest at about $4.1 million as of June 30.
In announcing the move, Galantas CEO Mario Stifano said the completion of the transaction allows the company to focus resources on advancing its Chile portfolio. The sale follows an earlier restructuring in which 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 Omagh project.
Omagh has faced multiple operational and financing setbacks, including pauses in underground development tied to security requirements and halted blasting due to PSNI limitations, before ore production was suspended in 2020 amid insufficient funding and the pandemic. After the transaction, Galantas holds no equity interest in Omagh and has also given up the right to convert the disposed 20% stake into a 3% net smelter return royalty.
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