TORONTO, ONTARIO--(Marketwired - Dec. 6, 2016) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) today announces that it intends, subject to suitable financing, to commence underground development and re-start concentrate shipments at its Omagh, Northern Ireland gold mine.
The Company is, via a Northern Ireland subsidiary, a Notice Party to a Judicial Review of its planning consent for an underground mine on its property at Omagh, County Tyrone, Northern Ireland. As announced on 23rd November 2016, the hearing, which commenced in September 2016, was to have been continued in December 2016 but the Court recently advised those dates are no longer suitable to the Judge. The Court has now listed dates for the continued hearing for 13th-15th February 2017. The Company has no certainty that there will not be further delays and also has no certainty over the time-scale for subsequent judgement.
The Company has received a report from the Company's legal advisors engaged for the judicial review and the Company confirms that it will continue to stand alongside the planning authority in robustly defending the consent.
The Company, which continues to hold a planning consent which it can implement, has been carrying out pre-conditions attaching to the planning consent and is ready for the next phase of implementation.
The Board of Directors, having considered the legal advisor's report referred to above, have decided to press ahead with immediate implementation of underground mining, to a plan as outlined in a NI 43-101 economic study (reported 4th September 2014). It is anticipated that a phased start-up of that plan will deliver early positive cash flow for a relatively modest capital expenditure. The phased arrangement, in terms of mine access dimensions, will allow for rapid expansion of production as additional capital becomes available. The mill is currently being re-commissioned in anticipation of a restarting of concentrate shipments in the first quarter of 2017, subject to suitable financing.
The Company already owns an ore processing plant, tailings facility, workshop, hydraulic excavators, articulated dump trucks, bull-dozer, etc., in addition to 220 acres of freehold land. As announced on 9th August 2016, it recently purchased a single boom drill rig and load-haul dump machine, suitable for underground use and that equipment has been delivered ready for use.
A budget of £2million (excluding lease finance) for the first phase of underground mining has been estimated. The Company is at an advanced stage of negotiation with a provider of lease finance, which will provide funding for additional mine equipment. Development of the underground mine is subject to the availability of financing and the Company expects to make a further announcement in that respect shortly.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including amongst others, geological matters, development intentions and cash flow expectations, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas' actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.
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.