Galantas Gold Corporation narrowed its losses by the end of September 2020 compared with the same period in 2019 for its Cavanacaw gold mine in Omagh, County Tyrone.
The company also said it was still “actively engaged” in seeking strategic alternatives including reviewing its licences and operations, considering a sale, joint venture, partnership or other options with third parties, and alternative financing. bit.ly/36kE4ZO
In its results for the three and nine months ended 30 September, the Canadian company reported losses of CA$2,249,412 / £1,299,000) for the nine months (2019: $2,389,426 / £1,379,863.32).
Revenue fell to $0 for the first nine months of 2020 (2019: $5,788) as did the cost and expenses of operations at $102,733 (2019: $192,606). Working capital deficit for the same period rose to $7,936,041 (2019: $5,108,181).
The company held $638,433 at the end of September 2020 (2019: $1,356,147).
Galantas said it began shipments of concentrate under off-take arrangements during Q2 2019, and provisional revenues during the three and nine months ended September 30, 2020 totalled some US$690,000 and US$876,000 respectively.
The company added that until the mine began commercial production, the net proceeds would be offset against development assets.
During the third quarter of 2020 Galantas closed the “fully subscribed” brokered private placement, raising CA$637,454 (£376,240).
The company also increased its loan facility in July 2020 by US$ 200,000 to US$1.8 million.
Galantas continued underground work during the first nine months of 2020, but has suspended ore production until it receives finance to expand operations.
The processing plant continued to operate on a limited basis with feedstock for the plant being from low grade stock.
During Q2, Galantas received approval from the PSNI for the secure storage and handling protocols required for an increase in blasting to a commercial level. The company’s processing plant operated on a limited basis using underground stock until Covid-19 restrictions were imposed.
Galantas reported that production during the three and nine months ended 30 September 2020 totalled 96 tonnes and 186 tonnes of concentrate provisionally assessed as grading 90 grams per tonne (g/t) and 90 g/t respectively.
Shipments of concentrate began during Q2 2019 and net proceeds will be offset against development assets until the mine starts commercial production.