10:26:05 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Galantas Gold Corp (2)
Symbol GAL
Shares Issued 187,549,186
Close 2018-05-23 C$ 0.10
Market Cap C$ 18,754,919
Recent Sedar Documents

Galantas has cash of $182,513 at March 31

2018-05-23 06:35 ET - News Release

Mr. Roland Phelps reports

GALANTAS REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2018 AND LOOKS TO COMMENCE CONCENTRATE PRODUCTION EARLY IN THIRD QUARTER

Galantas Gold Corp. has released its financial results for the quarter ended March 31, 2018.

Financial highlights

Highlights of the first quarter 2018 results are summarized in the associated table.

                                                       Quarter ended March 31   
                                                         2018            2017

Revenue                                                    $0          $2,734
(Cost) of sales                                       (24,066)        (63,416)
(Loss) before the items below                         (24,066)        (60,682)
Amortization (loss)                                   (64,249)        (40,055)
General administrative (expenses)                    (408,890)       (502,116)
Unrealized (loss)/gain on fair
value of derivative financial liability                10,000         (22,000)
Foreign exchange (loss)/gain                          (37,293)        (59,381)
Net (loss) for the quarter                           (524,498)       (684,234)
Working capital (deficit)                          (5,123,420)     (1,395,866)
Cash (loss) generated from operations
before changes in non-cash working capital           (332,420)       (394,599)
Cash at March 31, 2018                                182,513       2,310,653
                                                                                                         

The net loss for the quarter ended March 31, 2018, amounted to $524,498 (2017: $684,234) and the cash outflow from operating activities before changes in non-cash working capital items for the quarter ended March 31, 2018, amounted to $332,420 (2017: $394,599).

There were no financing activities during the first quarter. Additional loan advances from G&F Phelps Ltd., a related party, during the quarter totalled $399,074 (220,410 British pounds). Subsequent to March 31, 2018, Galantas announced that its operating subsidiary, Flintridge Resources Ltd., had signed a concentrate prepayment agreement and a loan facility agreement for $1.6-million (U.S.) ($2,012,000) with Ocean Partners U.K. Ltd., together with an increased, on-demand loan facility of 600,000 British pounds with G&F Phelps Ltd. (see press release dated April 12, 2018, for further details).

Permitting

In November, 2017, Galantas reported that it had received notice of an application, by a third party, to the Court of Appeal, in relation to a positive judicial review judgment regarding the grant of planning permission. This was subsequently heard in February, 2018. The court will deliver its judgement at a later date, currently unknown.

Production/mine development

Production of flotation concentrate at the Omagh mine from development ore is expected to restart early in the third quarter of 2018. The granting of planning consent in 2015 for an underground operation at the Omagh site, now subject to a judicial review appeal result, permits the continuation and expansion of gold mining underground, following the exhaustion of accessible resources available to the previous open-pit operation. The underground mine, which is now in active development, will utilize the same processing methods and will be the first underground gold mine, of any scale, in Ireland. The strategy is to establish the underground mine and look for further expansion of gold resources on the property, which has many undrilled targets.

The phased development arrangement, in terms of mine access dimensions, is expected to allow for rapid expansion of production as additional capital becomes available. The mill has now been recommissioned in anticipation of a restarting of concentrate shipments.

Underground development of a decline tunnel, located at the base of the existing open pit, started in the first quarter 2017. After overcoming initial difficulties, tunnelling continued through 2017, the first quarter 2018 and to date. A detailed plan is being implemented to accelerate progress in line with the planning consent. The development of the first underground ore drive, which lies beneath a safety (crown) pillar against the Kearney open pit above, was projected, April 20, 2018, as approximately 90 metres away. This was expected to be reached at the end of June but the current progress suggests this may be reached earlier in June, with processing of development ore recommencing early in the third quarter of 2018. Underground development, using drill and blast techniques, is being carried out by an in-house crew which is fully trained in safety and operating procedures. An in-house, mines rescue team has also been trained and equipped.

The present drilling and loading equipment, which was purchased for training and early tunnel development purposes, is performing above expectations but has lower productivity than is expected with current technology. New drilling equipment is being acquired on a rental basis, with options to purchase, and is expected to improve advance rates by over 40 per cent. The supplier of the equipment has advised of delays in production of the new equipment but has recently commissioned a substitute used tunnelling drill rig on loan. Whilst the interim unit is not expected to be as efficient compared with the new rig, this has led to a significant improvement in advance rate. Infrastructure improvements were required to support the rig which were implemented during the first quarter of 2018. Additional personnel have been added to the work force, which now total 27 on the Omagh site.

Safety and environmental matters remain a high priority for Galantas. The company is pleased to report zero lost-time accidents for the quarter and routine water and other environmental monitoring continues to be compliant.

Roland Phelps, president and chief executive officer of Galantas Gold, commented: "I look forward to seeing the improved advanced rate continue. The anticipated start of operations at the flotation plant in coming months marks a milestone in underground operations. We continue to invest in improved equipment and training of personnel and expect to accelerate this as cash is generated from operations."

The detailed results and management discussion and analysis (MD&A) are available on SEDAR and the company's website and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

The annual general and special meeting of the company will be held at Thursday, June 28, 2018, at 11 a.m. Toronto time at the registered office of the company, DSA Corporate Services Inc. 82 Richmond St. East, Toronto, Ont., M5C 1P1.

Qualified person

The financial components of this disclosure has been reviewed by Leo O'Shaughnessy, chief financial officer, and the production, exploration and permitting components by Roland Phelps, president and chief executive officer, qualified persons under the meaning of National Instrument 43-101. The information is based upon local production and financial data prepared under their supervision.

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