22nd Nov 2019 13:00
(Alliance News) - Galantas Gold Corp on Friday said its loss widened in the third quarter of the year and it is assessing its options due to suspended blasting at it Northern Irish Omagh gold mine.
Shares in Galantas were down 23% at 1.25 pence in London on Friday afternoon.
At the end of October, Galantas announced it had temporarily suspended blasting operations at its Omagh hold mine in Northern Ireland. Blasting is currently limited by the necessity for supervision by the Northern Irish police service.
While Galantas has been working with authorities to resume normal levels of blasting, final approval for its increased blasting protocols has yet to be obtained.
"Although the company expects to receive the approvals based on previous discussions with the relevant authorities, a date for receipt of the required approvals and therefore the date on which implementation of the increased blasting schedule is not yet known," said Galantas.
Current arrangements are insufficient for Galantas to implement its mine operation expansion according to the mine plan, with the suspension putting a "financial burden" on the company.
The company went on to say it is starting to look into strategic alternatives - including a review of its licences and operations - given the economic damage caused by the suspension. Galantas is also contemplating a joint venture, other options with third parties, and alternative structures of financing.
"The company expects it will have to raise funds within the next six months and will update the market in due course," said Galantas.
For the three months ended September 30, Galantas's net loss was CAD718,046, around GBP420,000, widened from CAD706,717 the year before.
Major factors in this were a % rise in general administrative expenses to CAD606,535 from CAD 576,256 and a swing to a CAD13,664 loss on foreign exchange from a CAD24,905 gain the year before.
Revenue from jewellery sales fell very steeply to just CAD5,788 from CAD14,203. Galantas sold approximately USD519,000 of concentrate during the three month period but as its mine has not yet achieved commercial production, concentrate proceeds were offset against its development assets.
By Anna Farley; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Galantas Gold