Galantas Reports Results for the Quarter Ended March 31, 2019 and Announces Shareholders Meeting
May 21 2019 - 2:00AM
Galantas Gold Corporation (the "Company" or “Galantas”) is pleased
to announce its financial results for the Quarter ended March 31,
2019.
Financial HighlightsHighlights of the first
quarter 2019 results, which are expressed in Canadian Dollars, are
summarized below:
|
Quarter Ended March 31 |
All in CDN$ |
|
2019 |
|
|
2018 |
|
Revenue |
$ 0 |
|
$ 0 |
|
Cost and expenses of Operations |
$(70,026 |
) |
$(24,066 |
) |
Loss before the items below |
$(70,026 |
) |
$(24,066 |
) |
Amortization |
$(87,405 |
) |
$ (64,249 |
) |
General administrative expenses |
$(602,429 |
) |
$(408,890 |
) |
Unrealized gain on fair value of derivative financial
liability |
$0 |
|
$ 10,000 |
|
Foreign exchange (loss) |
$(19,657 |
) |
$ ( 37,293 |
) |
Net (Loss) for the Quarter |
$ (779,517 |
) |
$ (524,498 |
) |
Working Capital (Deficit) |
$(2,702,004 |
) |
$(5,123,420 |
) |
Cash (loss) generated from operations before changes in non-cash
working capital |
$(391,037 |
) |
$(332,420 |
) |
Cash at March 31, 2019 |
$ 3,767,187 |
|
$ 182,513 |
|
The Net Loss for the quarter ended March 31,
2019 amounted to CDN$ 779,517 (2018: CDN$ 524,498) and the cash
outflow from operating activities before changes in non-cash
working capital items for the quarter ended March 31, 2019 amounted
to CDN$ 391,037 (2018: CDN$ 332,420).
The Company had a cash balance of $ 3,767,187 at
March 31, 2019 compared to $ 182,513 at March 31, 2018. The working
capital deficit at March 31, 2019 amounted to $ 2,702,004 compared
to a working capital deficit of $ 5,123,420 at March 31, 2018.
Until the mine reaches the commencement of commercial production,
which is expected to be later in 2019, all development expenditures
are capitalised with net proceeds from sales deducted from
development costs.
Production/Mine Development
In the first quarter of 2019 the Omagh gold mine
continued limited production of gold concentrate from feed produced
in the development of the Kearney vein. The plant, which produces a
gold & silver concentrate using a non-toxic, froth-flotation
process, is running on a batch basis from a stockpile of
underground vein material plus additional feed produced from
on-vein development operations.
Underground development of a decline tunnel
continued to be progressed during the first quarter of 2019 with
further cross-cuts allowing access to lower levels of vein
development which forms the development necessary to demarcate
production panels. The increased number of development headings is
expected to provide an enhanced supply of mill feed. During
the quarter, on-vein development on the 1084 (second) level
continued with 32 metres of vein drive being completed. Later in
the quarter the company reported that the main decline development
tunnel has reached the 1072 (third) level and a 58 metre cross-cut
to intersect the Kearney vein was in progress. The vein on the 1072
(third) was reached early in the second quarter and on vein
development has commenced. At quarter end the main decline tunnel
was 423 metres in length and the total of all underground drivages
exceeded 1136 metres. For most of the rest of 2019, the increased
quantities of processing feed will be sourced from multiple on-vein
development headings. Mining between levels (stoping) is expected
by or before early 2020.
Ground conditions have notably improved as the
mine continues towards deeper levels, a feature ascribed to changes
in rock stress conditions influenced, at higher levels, by the open
pit excavation. The mine employs a robust ground control procedure
using rockbolts, mesh and / or shotcrete to engineered designs.
On March 26, 2019, Galantas reported the
expansion of gold milling operations at the Omagh processing plant.
Milling operations progressed during the first quarter of 2019 on
an extended dayshift basis, as feed became available. As expected,
a second shift was subsequently added early in the second quarter.
Additional milling shifts are planned to be added in the third
quarter, when additional quantities of feed are confirmed. The
processing plant, which was used formerly for open-pit operations,
has had the benefit of a recent upgrade and further upgrades are
planned. Recent analyses suggest that the product from the plant
meets quality criteria and operates at a high efficiency. Shipments
into a concentrate pre-payment / loan facility with Ocean Partners
UK Ltd (announced 12th April 2018) commenced early in the second
quarter. Three shipments of approximately seventy five tonnes of
concentrate have been shipped, with a further 25 tonnes expected to
ship shortly. The value of the shipments await assay agreement as
per usual procedures.
Environmental monitoring continues to
demonstrate a high level of regulatory compliance. Safety is a high
priority and the zero lost time accident rate, since the start of
underground operations, continues.
The Annual and Special Meeting of the Company is
to be held at 11:00 a.m. (Toronto time) on 27th June 2019 at DSA
Corporate Services Inc., 82 Richmond Street East, Toronto, Ontario,
M5C1P1, Canada.
The detailed results and Management Discussion and Analysis
(MD&A) are available on www.sedar.com and www.galantas.com 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.
Qualified PersonThe financial components of
this disclosure has been reviewed by Leo O’ Shaughnessy (Chief
Financial Officer) and the production component by Roland Phelps
(President & CEO), qualified persons under the meaning of NI.
43-101 and AIM requirements. The information is based upon local
production and financial data prepared under their supervision.
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This press release contains forward-looking statements
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws, including revenues and cost estimates, for the Omagh Gold
project. Forward-looking statements are based on estimates and
assumptions made by Galantas in light of its experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that Galantas
believes are appropriate in the circumstances. Many factors could
cause Galantas’ actual results, the performance or
achievements to differ materially from those expressed or implied
by the forward looking statements or strategy, including: gold
price volatility; discrepancies between actual and estimated
production, actual and estimated metallurgical
recoveries and throughputs; mining operational risk, geological
uncertainties; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign
involvement; speculative nature of gold exploration; dilution;
competition; loss of or availability of key employees; additional
funding requirements; uncertainties regarding planning and other
permitting issues; and defective title to mineral claims or
property. These factors and others that could affect Galantas’s
forward-looking statements are discussed in greater detail in the
section entitled “Risk Factors” in Galantas’ Management Discussion
& Analysis of the financial statements of Galantas and
elsewhere in documents filed from time to time with the Canadian
provincial securities regulators and other regulatory authorities.
These factors should be considered carefully, and persons reviewing
this press release should not place undue reliance on
forward-looking statements. Galantas has no intention and
undertakes no obligation to update or revise any forward-looking
statements in this press release, except as required by law.
Galantas Gold Corporation Jack Gunter P.Eng – Chairman, Roland
Phelps C.Eng – President & CEO Email: info@galantas.com
Website: www.galantas.com Telephone: +44 (0) 2882 241100
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard
Tonthat
Telephone: +44(0)20 7383
5100
Whitman Howard Ltd (Broker & Corporate
Adviser) Ranald McGregor-Smith, Nick Lovering Telephone:
+44(0)20 7659 1234
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