Galantas Reports Results FOR the Quarter Ended March 31, 2019 and Announces Shareholders Meeting
GALANTAS GOLD CORPORATION
TSXV & AIM : Symbol GAL
GALANTAS REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2019 AND ANNOUNCES
SHAREHOLDERS MEETING
May 21, 2019: Galantas Gold Corporation (the "Company" or “Galantas”) is pleased to announce its financial results for the Quarter
ended March 31, 2019.
Financial Highlights
Highlights of the first quarter 2019 results, which are expressed in Canadian Dollars, are summarized below:
Quarter Ended March 31
All in CDN$ 2019
2018
Revenue $ 0 $ 0
Cost and expenses of Operations $ (70,026) $ (24,066)
Loss before the items below $ (70,026) $ (24,066)
Amortization $ (87,405) $ (64,249)
General administrative expenses $ (602,429) $ (408,890)
Unrealized gain on fair value of derivative financial liability $ 0 $ 10,000
Foreign exchange (loss) $ (19,657) $( 37,293)
Net (Loss) for the Quarter $ (779,517) $ (524,498)
Working Capital (Deficit) $ (2,702,004) $ (5,123,420)
Cash (loss) generated from operations before changes in non-cash working capital $ (391,037) $ (332,420)
Cash at March 31, 2019 $ 3,767,187 $ 182,513
The Net Loss for t he quarter ended March 31, 2019 amounted to CDN$ 779,517 (2018: CDN$ 524,498) and the cash outflow from
operating activities before changes in non -cash working capital items for the quarter ended March 31, 201 9 amounted to CDN$
391,037 (2018: CDN$ 332,420).
The Company had a cas h balance of $ 3,767,187 at March 31, 2019 compared to $ 182,513 at March 31, 2018. The working capital
deficit at March 31, 2019 amounted to $ 2,702,004 compared to a working capital deficit of $ 5,123,420 at March 31, 2018. Until the
mine reaches the com mencement of commercial production, which is expected to be later in 2019, all development expenditures are
capitalised with net proceeds from sales deducted from development costs.
Production/Mine Development
In the first quarter of 201 9 the Omagh gold mine continued limited production o f gold concentrate from feed produced in the
development of the Kearney vein . The plant, which produces a gold & silver concentrate using a non -toxic, froth-flotation process, is
running on a batch basis from a stockpile of underground vein material plus a dditional feed produced from on -vein development
operations.
Underground development of a decline tunnel continued to be progressed du ring the first quarter of 2019 with further cross -cuts
allowing access to lower level s of vein development which forms t he development necessary to demarcate production panels. The
increased number of development headings is expected to provide an enhanced supply of mill feed. During the quarter , on-vein
development on the 1084 (second) l evel continued with 32 metres of ve in drive being completed. Later in the quarter the company
reported that the main decline development tunnel has reached the 1072 (th ird) level and a 58 metre cross -cut to intersect the Kearney
vein was in progress. The vein on the 1072 (third) was reached early in the second quarter and on vein development has commenced.
At quarter end the main decline tunnel was 423 metres in length and the total of all underground drivages exceed ed 1136 metres. For
most of the rest of 2019, the increased quantities of processing feed will be sourced from multiple on -vein development headings.
Mining between levels (stoping) is expected by or before early 2020.
Ground conditions have notably improved as the mine continues towards deep er levels, a feature ascribed to ch anges in rock stress
conditions influenced, at higher levels, by the open pit excavation. The mine employs a robust ground control procedure using
rockbolts, mesh and / or shotcrete to engineered designs.
On March 26, 2019, Galantas reported the expansio n of gold milling operations at the Omagh processing plant. Milling operations
progressed during the first qua rter of 2019 on an extended dayshift basis, as feed became available. As expected, a second shift was
subsequently added early in the second quart er. Additional milling shifts are planned to be added in the third quarter , when additional
quantities of feed are confirmed. The processing plant, which was used formerly for open -pit operations, has had the benefit of a
recent upgrade and further upgrade s are planned. Recen t analyses suggest that the product from the plant meets quality criteria and
operates at a high efficiency. Shipments into a concentrate pre -payment / loan facility with Ocean Partners UK Ltd (announced 12 th
April 2018) commenced early in the second quarter . Three shipments of approximately seventy five tonnes of concentrate have been
shipped, with a further 25 tonnes expected to ship shortly. The value of the shipments await assay agreement as per usual procedures.
Environmental monitoring continues to demonstrate a high level of regulatory compliance. Safety is a high priority and the zero lost
time accident rate, since the start of underground operations, continues.
The Annual and Special Meeting of the Company is to be held at 11:00 a.m. (Toronto time) on 27th June 2019 at DSA
Corporate Services Inc., 82 Richmond Street East, Toronto, Ontario, M5C1P1, Canada.
The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and
the highlights in this release should be read in conjunction with the detailed results and MD&A. Th e MD&A provides an analysis of
comparisons with previous periods, trends affecting the business and risk factors.
Qualified Person
The financial components of this disclosure has been reviewed by Leo O’ Shaughnessy (Chief Financial Officer) and the produ ction
component by Roland Phelps (President & CEO), qualified persons under the meaning of NI. 43-101 and AIM requirements. The
information is based upon local production and financial data prepared under their supervision.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: T his press release contains forward-looking statements
within the meaning of the United States Pri vate Securities Litigation Reform Act of 1995 and applicable Canadian securities laws,
including revenues and cost estimates, for the Omagh Gold project. Forwa rd-looking statements are b ased on estimates and
assumptions made by Galantas in light of its exp erience and perception of historical trends, current conditions and expected future
developments, as well as other factors that Ga lantas believes are appropriate in the circumstances. Many factors could cause Galantas’
actual results, the performance or a chievements to differ materially from those expressed or implied by the forward looking
statements or strategy, including: gold pr ice volatility; discrepancies between actual and estimat ed production, actual and estimated
metallurgical recoveries and thr oughputs; mining operational risk, geological uncertainties; regulatory restrictions, including
environmental regulatory restricti ons and liability; risks of s overeign involvement; specu lative nature of gold exploration; dilution;
competition; loss of or a vailability of key employees; additional funding requirements; uncertainties regarding planning and other
permitting issues; and d efective title to mineral cla ims or property. These fact ors 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 finan cial statements of Galantas a nd elsewhere in documents f iled fro m 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 shoul d not place undue reliance on forward-looking statements . Galant as has no intention and undertakes no obligation to
update or revise any forward-looking statements in this press release, except as required by law.
Galantas Gold Corporation
Jack Gunter P.Eng – Chairman, Roland Phelps C.Eng – President & CEO
Email: [email protected]
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