TORONTO (miningweekly.com) – TSX-V- and Aim-listed gold producer Galantas Gold on Wednesday said it had struck an accord with TJH of Dublin, Ireland, to produce, market and sell a range of jewellery products using Irish gold sourced from its Omagh mine.
Under terms of the agreement, gold sold from the Omagh stockpile would be sold to TJH at a premium to the average monthly London Metal Bullion price, subject to a minimum price, with royalty on wholesale jewellery sales, payable on a quarterly basis.
TJH is an established jewellery marketer and manufacturer, having previously developed other brands, including Irish-orientated brands. The premium, minimum price, royalty and volume were kept confidential for commercial reasons.
Galantas has full ownership of Ireland’s only gold mine, which had recently ceased openpit operations.
The company had launched a planning application to continue operations underground, which could be finalised before year-end.
Galantas noted that until underground mining was permitted and operational, the company would source gold for the contract from existing stock from previous production.
On Wednesday, Galantas' Aim stock closed up 7.41% at £0.036 apiece.