For the three months to end September, Galantas Gold Corporation (LON:GAL) booked a net loss of just under C$453,000, wider than the C$257,000 booked in the corresponding period of 2016.
The wider loss is in part a reflection of increased activity as Galantas moves forward with efforts to put the underground portion of its Omagh gold mine into production.
The net loss for the nine months to the end September amounted to C$1,65 mln, against C$1.2 mln for the corresponding period in 2016.
Galantas had cash balances of just over C$735,000 at end September, but subsequently the company announced a proposed private placement of shares which is designed to raise a maximum of C$ 1.4 mln. The net proceeds to be raised by the placing are intended to be used for working capital purposes and to continue development of an underground mine on the Omagh property. The placing is expected to be on a part brokered basis.
During the third quarter, Galantas reported a positive outcome to the judicial review into the planning consent for underground development at the Omagh mine when the Belfast High Court denied a third party’s request to quash planning consent at the gold mine.
However, subsequently, Galantas has received notice that an application has been made to the Court of Appeal regarding the decision.
As things stand, though, the underground mine remains in in active development.
The mining risks are relatively low, as the process will utilize the same methods as were used at the open pit mine.
It will be the first underground gold mine, of any scale, in Ireland.