08:18 AM EDT, 06/09/2025 (MT Newswires) -- Galantas Gold ( GALKF ) traded 15% higher at last look Monday in UK trading as the company signed a binding term sheet with Ocean Partners UK to form a joint venture over the Omagh gold project in Northern Ireland.

Under the terms, Ocean Partners will exchange about US$14 million in existing loans for an 80% interest in Flintridge Resources and an 80% interest in Omagh Minerals. Flintridge and Omagh Minerals are subsidiaries of Galantas that together own the Omagh project.

Galantas will own the remaining 20% interest in each of Flintridge and Omagh Minerals.

"The proposed transaction represents a turning point in the Omagh project's development, enabling Galantas to benefit from a recommencement in production amid rising gold prices, while also strengthening the company's balance sheet," said Mario Stifano, CEO of Galantas.

Following the proposed transaction, Ocean Partners can convert about US$1 millionof remaining debt into a 0.001% interest in Flintridge at any time after mining has restarted on the project.

As part of the agreement, Ocean Partners will invest an initial US$3 million in the project for exploration, a restart plan and general and administrative costs for a period of up to one year.

Ocean Partners will then have an option to invest an additional US$5 million for exploration and commissioning a development program. Galantas said it will be free carried on the initial US$3 million investment and will have the option to invest its pro-rata share on future investments.

Upon closing, the joint venture plans to commence a drill program, targeting high-grade zones at the Omagh project's Joshua Vein and while testing the northern extension of the Kearney Vein.

Galantas' share price slumped 14% on Friday to $0.095 on the TSXV.