Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTCQX:GALKF) said it has entered a forward sale agreement with Ocean Partners for gold produced at the Omagh gold mine in Northern Ireland for 2024 and early 2025.
The miner will supply 500 ounces per month from February 2024 to January 2025, 6,0000 ounces in total, at a strike price of US$1,775 per ounce generating US$804,000 immediately to Galantas.
Proceeds from the sale will fund the development of the underground mining operations at Omagh and provide working capital, Galantas noted.
Mario Stifano, Galantas’ chief executive, said he was grateful to Ocean for allowing it to utilise its trading platform and credit lines 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," he added in a statement.
As part of the agreement, Galantas has issued Ocean 500,000 warrants over shares exercisable at C$0.55 and expiring on 31 January 2025.