Galantas Gold Corporation reported an increase in losses as administrative costs doubled for its gold project at Cavanacaw in Omagh, Northern Ireland.
FINANCES
The Canadian company’s results for year ended 31 December 2021 show net loss of CA$5,284,431 (2020: $3,228,452).
General administrative expenses were $4,332,865 (2020: $2,065,277).
Cash outflow from operating activities before changes in non-cash working capital amounted to $1,678,797 (2020: $1,249,659).
SALES
Provisional concentrate sales totalled US$1,114,000 for 2021 (2020: US$1,355,000).
Galantas added that until the mine began commercial production, the net proceeds from concentrate sales were offset against development assets.
Sales revenue for 2021 was $Nil.
The company’s cash balance was $1,069,751 (2020: $612,094) and the working capital deficit amounted to $1,432,293 (2020: $7,710,084).
OPERATIONS
Galantas reported that 2,200 metres of underground mine development have to date been completed with rehabilitation of early mine workings continuing.
Upgrading work on mine electrical reticulation started during 2021 and is now completed.
The company has completed refurbishment and procurement of other major equipment.
The process plant is being prepared for installation of new equipment and key operational team members to be recruited.
BUSINESS STRUCTURE
Galantas’ wholly-owned subsidiary Cavanacaw Corporation has a 100% shareholding in both Flintridge Resources Ltd and Omagh Minerals Ltd.