Galantas Gold enters trading agreement with Ocean Partners

9th Dec 2022 14:38

(Sharecast News) - Galantas Gold has entered into a trading agreement with Ocean Partners UK, it announced on Friday.

The AIM-traded firm said Ocean had sold call options on 6,000 ounces of gold at 500 ounces per month from February 2024 to January 2025 on behalf of Galantas, at a strike price of $1,775 per ounce.

That would make for total proceeds of $0.8m to Galantas, for an option premium of $134 per ounce.

It said proceeds from the sale would be used to fund development of the underground mining operations at the Omagh Gold Project in Northern Ireland, as well as for working capital.

"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 utilise its trading platform and credit lines that are not typically available to junior producers," said chief executive officer Mario Stifano.

"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."

At 1347 GMT, shares in Galantas Gold Corporation were down 0.29% at 34.4p.

Reporting by Josh White for Sharecast.com.