Galantas Gold Corporation Galantas to commence phased development (0067R)
December 06 2016 - 1:00AM
UK Regulatory
TIDMGAL
RNS Number : 0067R
Galantas Gold Corporation
06 December 2016
GALANTAS GOLD CORPORATION
TSXV - "GAL"
AIM - "GAL"
GALANTAS TO COMMENCE PHASED DEVELOPMENT OF OMAGH GOLD MINE.
6(th) December 2016. Galantas Gold Corporation (the Company)
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 23(rd) 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 13(th) -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 4(th) 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 9(th) 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 GBP2million (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.
Enquiries
Galantas Gold Corporation
Jack Gunter P.Eng - Chairman
Roland Phelps C.Eng - President & CEO
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44 (0) 2882 241100
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat
Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Ranald McGregor-Smith, Nick Lovering
Telephone: +44(0)20 7659 1234
This information is provided by RNS
The company news service from the London Stock Exchange
END
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