Galantas exits Omagh gold project in $5M deal
Canadian junior sheds its final Northern Ireland interest as debt settlement clears the way for a sharper focus on Chilean assets.
Galantas Gold, a Toronto-listed mining company, has recently sold its remaining 20% stake in Northern Ireland's Omagh gold project to Ocean Partners UK for a total of $5 million. This marks the end of Galantas' long involvement with the troubled asset, as the company shifts its focus toward its gold and copper projects in Chile.
Of the total consideration, $3.26 million was used to settle outstanding debt owed to Ocean Partners under a promissory note and other obligations, while the remaining $1.74 million was paid in cash.
As of June 30, Galantas valued the 20% stake at approximately $4.1 million. CEO Mario Stifano expressed that the completion of this transaction would enable Galantas to concentrate its resources on advancing its portfolio of gold and copper assets in Chile. The sale also completes a restructuring process that had already granted Ocean Partners control of the Omagh project.
Omagh has faced numerous operational challenges over the years, including security requirements, financing difficulties, and the impact of the COVID-19 pandemic. Underground development at the site was temporarily halted in 2017 due to increased security needs, and blasting operations were stopped again in late 2019 due to PSNI limitations. Ore production was eventually suspended in 2020 due to insufficient funding and the pandemic's impact.
In 2021, gold miners in Northern Ireland reached an agreement with the government, which provided free policing related to explosives handling, helping companies accelerate sampling and project development. Despite these efforts, Galantas ultimately decided to reduce its exposure to the Omagh project rather than invest further resources into it.
Following the transaction, Galantas no longer has an equity stake in the project and has relinquished the right to convert its portion into a net smelter return royalty. This move positions the Canada-based junior mining company to focus its resources on its Chilean gold and copper portfolio, which includes the Andacollo gold project and the Indiana project.
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