07:59 AM EDT, 09/24/2025 (MT Newswires) -- Galantas Gold ( GALKF ) Wednesday said it has closed a transaction to form a joint venture with Ocean Partners U.K. to develop the Omagh gold project in Northern Ireland.

With the joint venture formally established, work will begin on a new drill program targeting high-grade zones at the Joshua Vein and testing the northern extension of the Kearney Vein to accelerate resource definition.

Ocean Partners has completed the exchange of its loans amounting US$14 million for an 80% interest in Flintridge Resources and Omagh Minerals, subsidiaries of Galantas that collectively own the Omagh Project. As a result, Galantas retains a 20% interest in each subsidiary.

As part of the transaction, Ocean Partners has provided an initial capital investment of $3 million, known as the initial term. The funding will be allocated toward exploration, restart planning, and general and administrative costs during the joint venture's first phase.

Ocean Partners has also confirmed its option to provide an additional $5 million in a second phase, to be used for further exploration and the commissioning of a development program. Galantas retains the option to participate pro-rata in this future funding.

In connection with the joint venture, a shareholders' agreement has been executed, appointing Ocean Partners as operator of the Omagh Project. The board of Flintridge will consist of four representatives nominated by Ocean Partners and one representative nominated by Galantas, for so long as Galantas maintains at least a 10% interest in Flintridge.

During the initial term, Galantas holds the right to convert its 20% equity interest in Flintridge into a 3.00% net smelter return royalty. Half of this royalty would be subject to buy-back by Flintridge for $8 million.

If Galantas does not exercise this option, diluting its ownership in Flintridge below 10%, its equity interest will automatically convert into a 1.50% NSR, with half of that amount subject to buyback for $4 million.

"Galantas will continue advancing its other interests, including exploration at the Gairloch high-grade gold and copper volcanogenic massive sulphide ("VMS") project in Scotland," Galantas chief executive Mario Stifano said.

Galantas' share price at last look surged 8.6% in early London trading Wednesday.