Galantas Gold Enters Into Binding Term Sheet for Joint Venture With Ocean Partners UK Limited to Develop Omagh Gold Project in Northern Ireland

Core Viewpoint - Galantas Gold Corporation has entered into a binding term sheet with Ocean Partners UK Limited for a joint venture on the high-grade Omagh Gold Project, which includes a significant investment and restructuring of ownership interests [1][3][4]. Investment and Financial Structure - Ocean Partners will invest an initial US$3 million (GBP £2.2 million) for exploration and restart plans, with an option for an additional US$5 million (GBP £3.7 million) after the initial term [2]. - Ocean Partners will exchange approximately US$14 million (GBP £10.3 million) in existing loans for an 80% interest in Flintridge Resources Limited and Omagh Minerals Ltd, while Galantas retains a 20% interest in both [1][2]. - Following the transaction, Galantas will have the option to convert its 20% ownership in Flintridge into a 3.00% net smelter return royalty [6]. Operational Plans - The joint venture will focus on exploration and restarting production at the Omagh Project, with plans to commence a drill program targeting high-grade zones [3][5]. - Upon closing the transaction, Galantas will also advance exploration at the Gairloch high-grade gold and copper VMS project in Scotland [3]. Corporate Governance and Shareholder Approval - The proposed transaction constitutes a fundamental change in business and requires shareholder approval, with a meeting scheduled for August 5, 2025 [4][17]. - Ocean Partners will operate the project, and the board of Flintridge will consist of four representatives from Ocean Partners and one from Galantas [5]. Financial Performance and Asset Management - The total losses attributable to Flintridge and Omagh Minerals for the year ended December 31, 2023, were £3,516,576, with total assets valued at £17,321,724 [18]. - Following the transaction, the assets of Flintridge and Omagh Minerals will no longer be consolidated in Galantas' accounts [18].