Galantas Gold Corporation DEVELOPMENT OF OMAGH GOLD MINE ON HOLD (0555D)
April 24 2017 - 2:00AM
UK Regulatory
TIDMGAL
RNS Number : 0555D
Galantas Gold Corporation
24 April 2017
GALANTAS GOLD CORPORATION
TSXV - AIM "GAL"
DEVELOPMENT OF OMAGH GOLD MINE ON HOLD
24th April 2017 Galantas Gold Corporation ("Galantas" or the
"Company") has received notification that the Police Service of
Northern Ireland ("PSNI") will not provide its required
anti-terrorism cover in regard to blasting operations required for
mine development at the Omagh Gold Mine.
The PSNI requires that it supervises transportation and use of
certain rock breaking materials and explosives at the Omagh Gold
Mine. This is due to the potential terrorist use of those materials
and is a requirement of PSNI specific to Northern Ireland. The PSNI
provide anti-terrorist cover for the transportation and use of
blasting materials throughout Northern Ireland. Explosives are
widely used in quarries and one other operating underground mine.
The Company understands that no charges are made to the quarries or
the other operating underground mine in Northern Ireland for PSNI
anti-terrorism cover.
The Company has been told that, due to PSNI resource constraints
and competing priorities, PSNI is currently only prepared to
provide anti-terrorism cover for a maximum of a 2 hour period, 2
days per week. It will also require a cost recovery agreement. Two,
2 hour periods per week is insufficient to sustain the development
or operation of the Omagh Gold Mine.
The Company disagreed with the principle of costs recovery for
anti-terrorism policing but advised PSNI that the Company was
prepared to enter into a costs recovery agreement, without
prejudice to its legal remedies in that respect, for a 2 hour
period, 5 days per week. Although PSNI provided the costs analysis
for the 5 day and 2 hour period anti-terrorism cover, which was
agreed without prejudice, the PSNI has refused to provide the
cover, citing competing priorities. The Company has been advised
that others have recently been provided in excess of this amount of
anti-terrorism cover and without a cost recovery agreement. The
Company has sought to discuss the issue at the highest levels of
command in PSNI and the Northern Ireland Office but engagement has
so far been declined.
The Company whole-heartedly supports PSNI and its officers in
its laudable objective of maintaining peace, law and order in
Northern Ireland in difficult circumstances. However, the Company
believes it is improper of PSNI to act in a discriminatory manner
against a lawful business. The Company has been given no
alternative other than to pursue its legal options, which may
include seeking substantial compensation for the costs of
delays.
The Omagh Gold Mine has an operational processing plant and
tailings facility with an excellent environmental record. The plant
uses a non-toxic, froth flotation process, without the use of
cyanide or mercury and produces a gold concentrate which is
exported for smelting. The remaining tailing sands are clean and
free from acid drainage. The plant is on stand-by awaiting ore from
underground development. The underground mine development expected
to create 130 jobs plus others in service industries associated
with the development.
Discussions, in regard to potential redundancies, with mine
personnel recently hired for the development, are taking place. New
hiring and the current investment program has been deferred.
Roland Phelps, President & CEO, Galantas Gold Corporation
said, "The PSNI's decision is clearly a blow to any proposed mine
development in Northern Ireland and negatively affects the
livelihoods of our employees and their families. The Company pays
full UK taxes, royalties and mineral license fees. A cost benefit
analysis of PSNI providing the required anti-terrorism cover
required by PSNI is hugely to the state's benefit - not that this
is any reason to allow a potential terrorist threat to interfere
with any citizen's lawful rights or business."
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries : Galantas Gold Corporation
L. Jack Gunter P.Eng - Chairman, Roland Phelps C.Eng - President
& CEO
Email: info@galantas.com Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat: Telephone: +44(0)20 7383
5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker: Telephone: +44(0)20 7659 1234
This information is provided by RNS
The company news service from the London Stock Exchange
END
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