Galantas suspends blasting, seeks 'strategic alternatives'
The share price of dual-listed Galantas Gold plunged nearly 40% in London on Tuesday morning, as the company announced the temporary suspension of blasting operations at its Omagh gold mine, in Northern Ireland.
Galantas has also started consultation with the workforce to reduce the number of people employed, while a process has been initiated to seek “strategic alternatives”.
The Canada-headquartered junior explained that blasting operations were currently limited, since the police had to supervise all blasting. This arrangement was not sufficient for the desired level of operations, Galantas said, adding that it had been trying to increase blasting availability to levels considered normal for an underground mine.
Although progress had been made, the company was still awaiting final approvals from the authorities in order to be able to implement its increased blasting protocols.
The current blasting arrangements were also not sufficient to allow for the expansion of the mine. Galantas said that the inefficiencies caused by the blasting arrangements had placed a “significant drain” on its financial resources and that it had to start to look for strategic alternatives.
These included reviewing its licences and operations, as well as 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 traded 39.44% lower at 2.18p in London on Tuesday morning.
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