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Galantas Gold frustrated by blasting issues at Omagh

Snapshot

  • Blasting paused due to police supervision arrangements
  • “Positive discussions” ongoing with PSNI
  • Scaled back mining operations continue
  • Talks started with potential JV parties 
mine

Quick facts: Galantas Gold Corp

Price: 20 GBX

AIM:GAL
Market: AIM
Market Cap: £6.46 m
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Blasting operations are currently limited, since all blasting must be supervised by the Police Service of Northern Ireland.

Roland Phelps, Chief executive

 

How it's doing

Mining has been suspended while talks with the Ulster police continue over a blasting permit though in April Galantas said progress was being made with a re-start lightly pencilled in for 4-6 weeks.

Discussions are also underway over the status of the mine during the coronavirus crisis.

A small number of essential staff are continuing to provide safety, security, maintenance and fulfilling statutory obligations on site.

Essential staff are to operate under the health protocols advised by the authorities.

Galantas added that a number of parties have expressed an interest in the company in terms of a potential purchase or joint venture.

"Due diligence is being carried out on a remote basis at present but full assessments will inevitably be delayed during the current health emergency as travel is restricted."

Ownership structure

Canadian firm Melquart owns 24% of the Ulster-based gold miner and fully subscribed for the debenture, which carries a coupon of 15% per annum and converts into shares at a 25% discount to the market price.

A ten for one share consolidation is proposed with other major shareholders including Ross Beaty, Miton and chief executive Roland Phelps agreeing to the proposal.

If it converts, Melquart can hold a maximum 56.7% stake

Inflexion points

  • Has now hit Kearney vein on the fourth level at its Omagh gold mine
  • Galantas has a production ambition of 30,000oz in concentrate a year
  • The processing plant uses a non-toxic flotation process
  • Resolution of talks with PSNI over blasting at Omagh mine

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Watch

Galantas Gold reaches blasting agreement with PSNI for its gold mine near Omagh

Galantas Gold Corporation's (LON:GAL)(CVE:GAL) Roland Phelps speaks to Proactive London's Andrew Scott after reaching an agreement with the Police Service of Northern Ireland (PSNI) regarding blasting at its 100% owned gold mine near Omagh, Northern Ireland. He says they're planning to...

3 weeks, 3 days ago

2 min read