Galantas Gold Corporation aims to extend its current loans after it recorded more than a three-fold increase in losses at Cavanacaw gold mine in Omagh, Northern Ireland.
FINANCES
For the year ended 31 December 2022, Galantas’ financial statement showed net loss rose to C$16,633,939 due to a property, plant and equipment impairment of $10,124,920 (2021: loss $5,284,431).
The impairment is based on the mine’s value in use for a five-year period to 2022, during which the company received planning permission for the mine but then faced a judicial review and an appeal.
Cash outflow from operating activities before changes in non-cash working capital increased to $2,254,291 (2021: $1,678,797).
Working capital deficit rose to $11,027,964 (2021: $1,095,882).
The company held a cash balance of $1,038,643 (2021: $1,069,751).
LOANS
Galantas, whose current liabilities include financing facilities and loans, has started talks with its current finance providers to extend short-term loans.
The negotiations are “progressing positively” with the maturity dates for the loans expected to extend after 31 December 2023.
Sales revenue for year amounted to $nil (2021: $nil) while provisional concentrate sales nearly halved to US$608,000 (2021: US$1,114,000).
The company repeated earlier statements that until the mine begins commercial production, net proceeds from concentrate sales are offset against development assets.