29th Oct 2019 10:50
(Alliance News) - Galantas Gold Corp on Tuesday said it has temporarily suspended blasting operations operations at its Irish gold mine due to insufficient supervision arrangements and added that it will seek strategic alternatives due to "economic impingement on the company's operations."
Galantas Gold shares fell 39% at 2.18 pence each in London in morning trade.
The company said it has temporarily suspended blasting operations at the Omagh gold mine in Northern Ireland, since all blasting must be supervised by the Police Service of Northern Ireland and presently police arrangements are not sufficient for the desired level of operations.
"The current arrangements are not sufficient to allow for the expansion of mine operations as envisaged by the company's existing mine plan and until changes are agreed, the present inefficiencies caused by those arrangements form an increasing financial burden, which has proved a significant drain on the financial resources of the company," Galantas Gold explained.
The company said, as a result, it has started consultations to reduce employee numbers at the Omagh mine and save costs. Galantas, however, plans to continue with some some operations at the gold mine.
Galantas also has started to seek strategic alternatives including reviewing operations, finding a joint venture partner and alternative financing structures due to the "economic impingement" on its operations. It expects to raise new capital in the next six months.
By Tapan Panchal; [email protected]
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