Galantas Gold Corporation has entered into an agreement with Ocean Partners UK Ltd to sell call options on 6,000 oz gold over 12 months on behalf of the company for US$804,000.
USES
Ocean will sell the call options at 500 oz per month from February 2024 to January 2025 at a strike price of $1,775 per oz.
Proceeds will fund development of the underground mining operations at the Cavanacaw gold project in Northern Ireland and for working capital.
Chief executive Mario Stifano said the company was particularly grateful to Ocean for allowing Galantas 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.”
TERMS
Should the gold price from February 2024 to January 2025 be at or below US$1,775 per oz, 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 oz, Galantas will receive US$1,775 per oz.
Ocean has agreed to maintain all margin requirements through its existing credit lines on behalf of Galantas and provide additional financial support.
In return, Galantas has granted 500,000 warrants to Ocean at an exercise price of CAD$0.55 expiring on 31 January 2025.
ASSOCIATIONS
A director of Galantas Brent Omland is chief financial officer of Ocean and a nominee of Ocean on the board of Galantas.
He also holds a minority stake in, and is a director of, Ocean’s parent entity.