Losses widen for Galantas Gold as Omagh mine edges toward production

Galantas Gold recorded an increased net loss as it increased activity at its Northern Irish asset led to increased production costs.

A loss of CA$452,756 was produced for the three months leading to 30 September, up from the C$257,214 posted a year earlier as cost of sales, including production costs and inventory movement, came to C$38,915 mostly as a result of ongoing care, maintenance and restoration costs relating to the underground development of Galantas' Omagh project.

As a result, the firm's net loss for the nine months ended 30 September grew to C$1.65m from the C$1.2m a year earlier.

On Thursday, Galantas laid out terms of a proposed private placement of its shares to raise as much as C$1.4m to continue development at Omagh and other capital purposes.

The group had a cash balance of C$735,325 at the end of the quarter, little changed over the year.

Throughout the quarter Galantas reported a "positive outcome" to a judicial review into the planning consent at its Omagh mine after a complainants request that the consent be denied was quashed by Madam Justice McBride, however, the firm noted that it had subsequently received notice of an application to the Court of Appeal in regards to the decision.

The underground mine, the first of its kind in Ireland, was under development until such a time as a decision had been reached on the appeal.

As of 1045 GMT, shares had fallen back 12.82% to 4.25p.