Sale of Remaining Interest in Omagh Gold Project

Galantas sells final 20% Omagh stake for US$5M, clears US$3.26M debt, exits project.

What the company is saying

Galantas Gold Corporation announces the completed sale of its remaining 20% indirect interest in the Omagh gold project in Northern Ireland to Ocean Partners UK Limited. The company frames the transaction as a strategic move to crystallize value from a minority holding, strengthen the balance sheet, and focus resources on its gold and copper assets in Chile. The announcement emphasizes the US$5.0 million consideration, the discharge of US$3.26 million in debt, and the forfeiture of a 3.00% net smelter return royalty right. CEO Mario Stifano states the deal is in shareholders’ best interests and thanks Ocean Partners for its ongoing commitment. The company highlights that Ocean Partners is a substantial shareholder and that director Brent Omland, also CEO of Ocean Partners, recused himself from board deliberations. The release stresses compliance with related party transaction rules and regulatory exemptions, presenting the terms as fair and reasonable after consultation with the nominated adviser.

What the data suggests

The sale involved 20,000 shares of Flintridge Resources Limited and 215,208 shares of Omagh Minerals Limited, representing the last 20% indirect interest in the Omagh Project. Ocean Partners paid US$5.0 million in total, of which US$3.26 million was used to settle existing indebtedness, with the remainder paid in cash. As of June 30, 2026, the carrying value of the sold interest was approximately US$4.1 million (CAD$5.8 million), and Galantas’ share of attributable loss for the first half of 2026 was US$72,457 (CAD$101,790). Post-transaction, Galantas holds no equity in Omagh and loses the right to a 3.00% net smelter return royalty. The transaction is classified as a related party deal due to Ocean Partners’ significant shareholding and Brent Omland’s dual roles. The company relied on exemptions from formal valuation and minority shareholder approval, as the deal did not exceed 25% of market capitalization. No broader financial data or operational updates on remaining assets are provided.

Analysis

The announcement is a factual disclosure of the completed sale of Galantas Gold Corporation's remaining 20% indirect interest in the Omagh gold project. All key claims regarding the transaction—sale percentage, consideration, debt settlement, and loss attribution—are supported by specific numerical data. While the release references forward-looking statements about the company's future strategic focus and use of proceeds, these are presented as context rather than as promotional or exaggerated claims. There is no evidence of narrative inflation or overstatement; the language is measured and proportionate to the realised milestone. No large capital outlay or speculative benefit is described, and the transaction's financial impact is immediate and quantifiable. The absence of broader financial context is not a deficiency for this type of asset sale disclosure.

Risk flags

• ●Related party risk is present, as Ocean Partners is a substantial shareholder and its CEO, Brent Omland, is also a director of Galantas. Although Omland recused himself, such transactions can raise concerns about pricing and fairness, even with regulatory compliance.
• ●Disclosure risk exists due to the absence of detailed information on how proceeds will be redeployed or the financial outlook for the company’s remaining projects. Investors lack visibility into the next steps for capital allocation.
• ●Strategic concentration risk arises as Galantas is now fully dependent on its Chilean gold and copper assets, having exited its only Irish project. The company’s future performance hinges on advancement and success in Chile, where no new operational milestones are reported in this release.
• ●Loss of potential upside is a factor, as Galantas forfeits the right to convert its former Omagh stake into a 3.00% net smelter return royalty, eliminating any future revenue from that asset.

Bottom line

Galantas has exited the Omagh gold project, selling its final 20% stake for US$5.0 million and using most of the proceeds to clear US$3.26 million in debt owed to Ocean Partners. The transaction values the asset above its June 2026 carrying value of US$4.1 million, but the company also reports a US$72,457 attributable loss for the first half of 2026 from this interest. With no further equity or royalty rights in Omagh, Galantas is now entirely focused on its gold and copper projects in Chile, but provides no new operational or financial milestones for those assets. The deal is a related party transaction, with safeguards disclosed but inherent governance risks remaining. Investors now face a company with a cleaner balance sheet but increased exposure to the execution and development risks of its Chilean portfolio. The most important takeaway is that Galantas has monetized a non-core asset and reduced debt, but future value creation depends on delivering progress in Chile, for which no new details are provided.

Announcement summary

(TSX-V:GAL | AIM:GAL) Galantas Gold Corporation has completed the sale of its remaining 20% indirect interest in the Omagh gold project in County Tyrone, Northern Ireland to Ocean Partners UK Limited, pursuant to a share purchase agreement dated September 8, 2026. The transaction involved the sale of 20,000 shares of Flintridge Resources Limited and 215,208 shares of Omagh Minerals Limited, representing Galantas' remaining 20% indirect interest in the Omagh Project. The aggregate consideration paid by Ocean Partners to Cavanacaw was US$5.0 million, with approximately US$3.26 million of indebtedness owing by the Company to Ocean Partners satisfied, set off, or otherwise discharged at closing, and the balance paid in cash. The carrying value of the 20% interest as at 30 June 2026 was approximately US$4.1 million (CAD$5.8 million), and the Company's share of the loss attributable to this interest was approximately US$72,457 (CAD$101,790) for the six months ended 30 June 2026. Following completion, Galantas no longer holds any equity interest in the Omagh Project and will no longer have a right to convert the disposed 20% equity interest in Flintridge into a 3.00% net smelter return royalty. The transaction is consistent with Galantas' strategy of focusing its capital and management resources on its current portfolio of gold and copper assets, including the Andacollo Gold Project and the Indiana Project in Chile. Ocean Partners is a substantial shareholder of the Company, and Brent Omland, a director of Galantas, is also the Chief Executive Officer of Ocean Partners. Mr. Omland disclosed his interest in the agreement and did not participate in the board's deliberations or vote on the transaction. The disinterested directors, having consulted with the Company's Nominated Adviser, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned. The transaction is considered a related party transaction under AIM Rules and Multilateral Instrument 61-101, with Galantas relying on exemptions from formal valuation and minority shareholder approval requirements.

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