- Galantas Gold Corporation (GAL) has signed a trading agreement with Ocean Partners UK
- Under the agreement, 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
- The company will use the proceeds from the sale to fund development of the underground mining operations at the Omagh Gold Project in Northern Ireland and working capital
- Galantas Gold Corporation is a Canadian gold exploration company
- Galantas Gold Corporation opened trading at C$0.55
Galantas Gold Corporation (GAL) has signed a trading agreement with Ocean Partners UK Limited.
Under the agreement, 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).
The company will use the proceeds from the sale to fund development of the underground mining operations at the Omagh Gold Project in Northern Ireland and 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 utilize its trading platform and credit lines that are not typically available to junior producers,” noted Mario Stifano, CEO of Galantas.
“The sale of call options represents approximately 1.0 per cent of our resource base, resulting in a strengthened balance sheet as we work towards production ramp-up in 2023,” he added.
The terms of the agreement stipulate that if the gold price from February 2024 to January 2025 is at or below US$1,775 per ounce, Galantas will receive the price of gold at the time of the sale of its gold produced.
However, 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.
Galantas Gold Corporation is a Canadian public company whose strategy is to create shareholder value by operating and expanding gold production and resources at the Omagh Project in Northern Ireland.
Galantas Gold Corporation opened trading at C$0.55.
