Galantas Gold shares tumble as loss widens, blasting restrictions bite
By Duncan Ferris
Date: Friday 22 Nov 2019
(Sharecast News) - Shares in Galantas Gold dived on Friday as it reported a widened third-quarter loss and said blasting restrictions in Northern Ireland have begun to significantly drain its financial resources.
The gold miner booked a net loss of CA$0.7m (£0.4m) for the three months ended 30 September, 2% wider than its loss in the same period last year, as revenue dropped by 59% to CA$5,788.
The AIM-traded company warned that while some operations will continue at its Omagh gold mine, the current restrictions on blasting operations have halted its expansion plans.
Blasting operations at the mine have been limited as they must now be supervised by the Police Service of Northern Ireland.
Galantas said the increasing financial burden caused by these measures has begun to constitute a "significant drain" on its financial resources, with the company now discussing a reduction of employee numbers with its workforce.
The miner said: "In light of the economic impingement on the company's operations, the company is beginning to seek strategic alternatives including reviewing its licenses and operations; and considering the possibility of engaging in a joint venture or other options with third parties and alternative financing structures.
"The company expects it will have to raise funds within the next six months and will update the market in due course."
Galantas Gold shares were down by 23.08% at 1.25p at 0936 GMT.
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