Galantas Gold Corporation is a Canadian public company that trades on the TSX Venture Exchange and the London Stock Exchange AIM market, both under the symbol GAL
Galantas Gold Enters Into Trading Agreement With Ocean Partners. (Credit: Albert Hyseni on Unsplash)
Galantas Gold Corporation (TSX-V & AIM: GAL; OTCQX: GALKF) (“Galantas” or the “Company”) is pleased to announce that it has entered into an agreement (the “Trading Agreement”) with Ocean Partners UK Ltd. (“Ocean”), whereby Ocean has sold on behalf of Galantas call options on 6,000 ounces of gold at 500 ounces per month from February 2024 to January 2025 at a strike price of US$1,775 per ounce for proceeds of US$804,000 to Galantas (an option premium of US$134 per gold ounce).
Proceeds from the sale will be used to fund development of the underground mining operations at the Omagh Gold Project in Northern Ireland and working capital.
Mario Stifano, CEO of Galantas, commented: “We are grateful for the long-standing support of our shareholders who see the district-scale and high-grade potential of the Omagh Gold Project, and particularly Ocean for allowing Galantas to utilize its trading platform and credit lines that are not typically available to junior producers. The sale of call options represents approximately 1% of our resource base, resulting in a strengthened balance sheet as we work towards production ramp-up in 2023.”
Terms of the Trading Agreement
If the gold price during February 2024 to January 2025 is at or below US$1,775 per ounce, Galantas will receive the price of gold at the time for the sale of its gold produced. If the gold price is above US$1,775 per ounce, Galantas will receive US$1,775 per ounce in revenue for the sale of its gold. Ocean has agreed to maintain all margin requirements through its existing credit lines on behalf of Galantas and provide additional financial support.
Pursuant to the Trading Agreement, and in return for Ocean facilitating the call option sale and agreeing to maintain all margin requirements on Galantas’ behalf, which Galantas has determined has a value of at least CAD$150,000, Galantas has agreed to grant 500,000 warrants (the “Warrants”) to Ocean at an exercise price of CAD$0.55 expiring on January 31, 2025. The Warrants are subject to a hold period under applicable securities laws and the rules of the TSX Venture Exchange.
The Trading Agreement and the issuance of Warrants to Ocean shall be subject to the prior approval of the TSX Venture Exchange. There is no assurance that TSX Venture Exchange approval will be obtained.
Ocean is a person closely associated with Brent Omland, a Director of Galantas (within the meaning of the EU Market Abuse Regulation). Mr. Omland is Chief Financial Officer of Ocean and is a nominee of Ocean on the board of Galantas and holds a minority stake in, and is a director of, Ocean’s parent entity.
Source: Company Press Release