TIDMGAL
RNS Number : 1056K
Galantas Gold Corporation
31 August 2021
GALANTAS GOLD CORPORATION
TSXV & AIM: Symbol GAL
GALANTAS REPORTS FINANCIAL RESULTS FOR THE QUARTERED JUNE 30,
2021
August 31, 2021: Galantas Gold Corporation (the 'Company') is
pleased to announce its unaudited financial results for the Quarter
ended June 30, 2021.
Financial Highlights
Highlights of the second quarter 2021 results, which are
expressed in Canadian Dollars, are summarized below:
All figures denominated in Canadian Dollars (CDN$)
Quarter Ended Six Months Ended
June 30 June 30
2021 2020 2021 2020
Revenue $ 0 $ 0 $ 0 $ 0
Cost and expenses of operations $ (61,333) $ (31,239) $ (107,481) $ (67,075)
Loss before the undernoted $ (61,333) $ (31,239) $ (107,481) $ (67,075)
Depreciation $ (87,088) $ (84,391) $ (159,153) $ (173,118)
General administrative expenses $ (2,719,055) $ (650,727) $ (3,224,152) $ (1,307,495)
Foreign exchange (loss) / gain $ (21,092) $ (25,784) $ (37,745) $ 75,232
Net Loss for the period $ (2,888,568) $ (792,141) $ (3,528,531) $ (1,472,456)
Working Capital Surplus / (Deficit) $ 4,505,905 $ (7,700,406) $ 4,505,905 $(7,700,406)
Cash profit / (loss) from operating activities before
changes in non-cash working capital $ 144,806 $ (294,582) $ 144,806 $ (294,582)
Cash at June 30, 2021 $ 6,142,477 $ 199,953 $ 6,142,477 $ 199,953
Sales revenue for the quarter ended June 30, 2021 amounted to $
Nil compared to revenue of $ Nil for the quarter ended June 30,
2020. Shipments of concentrate commenced during the third quarter
of 2019. Concentrate sales provisional revenues totalled US$
218,000 for the second quarter of 2021 compared to US $ Nil for the
second quarter of 2020. Until the mine commences commercial
production, the net proceeds from concentrate sales are being
offset against development assets.
The Net Loss for the quarter ended June 30, 2021 amounted to $
2,888,568 (2020: $792,141) and the cash inflow from operating
activities before changes in non-cash working capital for the
quarter ended June 30, 2021 amounted to $144,806 (2020:
($294,582)). The difference in the net loss is mainly due to stock
based compensation and warrant issue costs from financing
activities.
The Company had a cash balance of $6,142,477 at June 30, 2021
compared to $ 199,953 at June 30, 2020. The working capital surplus
at June 30, 2021 amounted to $ 4,505,905 compared to a working
capital deficit of $7,700,406 at June 30, 2020.
Exploration
The Company during the month of July initiated an initial 4,000
metre Phase 1 drill program targeting the Joshua vein from surface
and targeting the Kearney vein from underground drilling.
Mine Development
Safety is a high priority and the company continued to invest in
safety-related training and infrastructure. The zero lost time
accident rate since the start of underground operations continues.
Environmental monitoring demonstrates a high level of regulatory
compliance. With the new management and operations team in place,
detailed review of mine plans and production profile are
ongoing.
"The Company has made great strides in advancing the Omagh
project with the commencement of drilling to increase the
confidence of resources for mine planning while also looking to
expand known resources. Operationally the Company has secured
critical new mining equipment to support mining activities while
strengthening site management and operations team as we commence a
phased restart of operations", commented Mario Stifano, CEO.
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. The MD&A provides an
analysis of comparisons with previous periods, trends affecting the
business and risk factors.
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/1056K_1-2021-8-30.pdf
Qualified Person
The financial components of this disclosure has been reviewed by
Alan Buckley (Chief Financial Officer) and the production and
permitting components by Brendan Morris (COO), qualified persons
under the meaning of NI. 43-101. The information is based upon
local production and financial data prepared under their
supervision.
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 revenues and
cost estimates, 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.
Information communicated within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Enquiries
Galantas Gold Corporation
Mario Stifano - CEO
Email: info@galantas.com
Website: www.galantas.com
Telephone: 001 416 453 8433
Grant Thornton UK LLP (Nomad)
Philip Secrett, Harrison Clarke, George Grainger:
Telephone: +44(0)20 7383 5100
Panmure Gordon & Co (AIM Broker & Corporate Adviser)
Nick Lovering, Hugh Rich:
Telephone: +44(0)20 7659 1234
GALANTAS GOLD CORPORATION
Condensed Interim Consolidated Financial Statements
(Expressed in Canadian Dollars)
(Unaudited)
Three and Six Months Ended June 30, 2021
NOTICE TO READER
The accompanying unaudited condensed interim consolidated
financial statements of Galantas Gold Corporation (the "Company")
have been prepared by and are the responsibility of management. The
unaudited condensed interim consolidated financial statements have
not been reviewed by the Company's auditors.
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Financial
Position
(Expressed in Canadian Dollars)
(Unaudited)
As at As at
June 30, December 31,
2021 2020
--------------------------------------------------------- ----------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 6,142,477 $ 612,094
Accounts receivable and prepaid expenses (note 4) 751,128 594,960
Inventories (note 5) 143,858 81,169
--------------------------------------------------------- ----------- ------------
Total current assets 7,037,463 1,288,223
Non-current assets
Property, plant and equipment (note 6) 21,886,598 21,158,103
Long-term deposit (note 8) 513,780 521,430
Exploration and evaluation assets (note 7) 827,182 750,741
--------------------------------------------------------- ----------- ------------
Total non-current assets 23,227,560 22,430,274
--------------------------------------------------------- ----------- ------------
Total assets $ 30,265,023 $ 23,718,497
--------------------------------------------------------- ----------- ------------
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and other liabilities (notes 9 and 16) $ 2,390,715 $ 1,350,142
Current portion of financing facilities (note 10) - 2,186,272
Due to related parties (note 14) 100,842 5,461,893
--------------------------------------------------------- ----------- ------------
Total current liabilities 2,491,557 8,998,307
Non-current liabilities
Non-current portion of financing facilities (note 10) 4,601,474 -
Due to related parties (note 14) 2,577,137 -
Decommissioning liability (note 8) 594,906 598,275
--------------------------------------------------------- ----------- ------------
Total non-current liabilities 7,773,517 598,275
--------------------------------------------------------- ----------- ------------
Total liabilities 10,265,074 9,596,582
--------------------------------------------------------- ----------- ------------
Equity
Share capital (note 11(a)(b)) 57,559,598 52,933,594
Reserves 14,514,682 9,734,121
Deficit (52,074,331) (48,545,800)
--------------------------------------------------------- ----------- ------------
Total equity 19,999,949 14,121,915
--------------------------------------------------------- ----------- ------------
Total equity and liabilities $ 30,265,023 $ 23,718,497
--------------------------------------------------------- ----------- ------------
The notes to the unaudited condensed interim consolidated
financial statements are an integral part of these statements.
Going concern (note 1)
Incorporation and nature of operations (note 2)
Contingency (note 16)
Events after the reporting period (note 17)
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Loss
(Expressed in Canadian Dollars)
(Unaudited)
Three Months Six Months Ended
June 30, June 30,
2021 2020 2021 2020
---------------------------------------------- ---------- ---------- ---------- ----------
Revenues
Sales of concentrate (note 13) $ - $ - $ - $ -
Cost and expenses of operations
Cost of sales 61,333 31,239 107,481 67,075
Depreciation (note 6) 87,088 84,391 159,153 173,118
---------------------------------------------- ---------- ---------- ---------- ----------
148,421 115,630 266,634 240,193
---------------------------------------------- ---------- ---------- ---------- ----------
Loss before general administrative and other
expenses (148,421) (115,630) (266,634) (240,193)
---------------------------------------------- ---------- ---------- ---------- ----------
General administrative expenses
Management and administration wages (note 14) 81,951 143,114 226,034 284,336
Other operating expenses 39,835 57,360 72,415 151,420
Accounting and corporate 73,273 15,109 88,457 29,253
Legal and audit 31,464 28,834 80,637 70,952
Stock-based compensation (note 11(d)) 1,230,510 12,064 1,235,141 (4,224)
Shareholder communication and investor
relations 116,888 45,882 176,741 92,958
Transfer agent 9,046 26,738 11,907 54,474
Director fees (note 14) 15,500 8,500 24,000 14,750
General office 7,770 2,776 11,339 5,489
Accretion expenses (notes 8 and 10) 27,856 164,797 132,416 310,918
Loan interest and bank charges less deposit
interest (notes 10 and 14) 80,780 145,553 160,883 297,169
Financing costs (note 10) 1,004,182 - 1,004,182 -
---------------------------------------------- ---------- ---------- ---------- ----------
2,719,055 650,727 3,224,152 1,307,495
Other expenses
Foreign exchange loss (gain) 21,092 25,784 37,745 (75,232)
---------------------------------------------- ---------- ---------- ---------- ----------
21,092 25,784 37,745 (75,232)
---------------------------------------------- ---------- ---------- ---------- ----------
Net loss for the period $(2,888,568) $ (792,141) $(3,528,531) $(1,472,456)
---------------------------------------------- ---------- ---------- ---------- ----------
Basic and diluted net loss per share (note 12) $ (0.05) $ (0.02) $ (0.07) $ (0.05)
---------------------------------------------- ---------- ---------- ---------- ----------
Weighted average number of common shares
outstanding - basic and diluted 60,494,975 32,321,472 53,501,436 32,321,472
---------------------------------------------- ---------- ---------- ---------- ----------
The notes to the unaudited condensed interim consolidated
financial statements are an integral part of these statements.
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Comprehensive
Loss
(Expressed in Canadian Dollars)
(Unaudited)
Three Months Six Months Ended
June 30, June 30,
2021 2020 2021 2020
---------------------------------------------- ---------- ---------- ---------- ----------
Net loss for the period $(2,888,568) $ (792,141) $(3,528,531) $(1,472,456)
Other comprehensive loss
Items that will be reclassified subsequently
to profit or loss
Exchange differences on translating foreign
operations (198,369) (670,131) (295,294) (287,422)
---------------------------------------------- ---------- ---------- ---------- ----------
Total comprehensive loss $(3,086,937) $(1,462,272) $(3,823,825) $(1,759,878)
---------------------------------------------- ---------- ---------- ---------- ----------
The notes to the unaudited condensed interim consolidated
financial statements are an integral part of these statements.
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)
Six Months Ended
June 30,
2021 2020
------------------------------------------------------------------------- ---------- ----------
Operating activities
Net loss for the period $(3,528,531) $(1,472,456)
Adjustment for:
Depreciation (note 6) 159,153 173,118
Stock-based compensation (note 11(d)) 1,235,141 (4,224)
Accrued interest (notes 10 and 14) 158,239 295,889
Foreign exchange loss 344,243 53,274
Accretion expenses (notes 8 and 10) 132,416 310,918
Financing costs (note 10) 1,004,182 -
Non-cash working capital items:
Accounts receivable and prepaid expenses (168,600) 26,588
Inventories (64,831) (427,718)
Accounts payable and other liabilities 124,053 (422,474)
Due to related parties (67,781) 168,784
------------------------------------------------------------------------- ---------- ----------
Net cash and cash equivalents used in operating activities (672,316) (1,298,301)
------------------------------------------------------------------------- ---------- ----------
Investing activities
Purchase of property, plant and equipment (1,194,831) (345,669)
Exploration and evaluation assets (87,456) (57,119)
------------------------------------------------------------------------- ---------- ----------
Net cash and cash equivalents used in investing activities (1,282,287) (402,788)
------------------------------------------------------------------------- ---------- ----------
Financing activities
Proceeds of private placements (note 11(b)(i)) 7,998,980 -
Share issue costs (783,262) -
Proceeds from exercise of warrants 330,000 -
Repayment of financing facilities (note 10) (23,802) (8,353)
------------------------------------------------------------------------- ---------- ----------
Net cash and cash equivalents provided by (used in) financing activities 7,521,916 (8,353)
------------------------------------------------------------------------- ---------- ----------
Net change in cash and cash equivalents 5,567,313 (1,709,442)
Effect of exchange rate changes on cash held in foreign currencies (36,930) (4,025)
Cash and cash equivalents, beginning of period 612,094 1,913,420
------------------------------------------------------------------------- ---------- ----------
Cash and cash equivalents, end of period $ 6,142,477 $ 199,953
------------------------------------------------------------------------- ---------- ----------
Cash $ 6,142,477 $ 199,953
Cash equivalents - -
------------------------------------------------------------------------- ---------- ----------
Cash and cash equivalents $ 6,142,477 $ 199,953
------------------------------------------------------------------------- ---------- ----------
The notes to the unaudited condensed interim consolidated
financial statements are an integral part of these statements.
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Changes in
Equity
(Expressed in Canadian Dollars)
(Unaudited)
Reserves
------------------------------------------------------
Equity
settled Foreign Equity
component
share-based currency of
Share Warrants payments translation convertible
capital reserve reserve reserve debenture Deficit Total
----------------- ---------- --------- ----------- ----------- ----------- ----------- ----------
Balance, December
31, 2019 $50,123,910 $ 786,000 $ 7,585,580 $ 796,754 $ 248,078 $(45,317,348) $14,222,974
Expiry of
warrants - (786,000) 786,000 - - - -
Stock-based
compensation
(note 11(d)) - - (4,224) - - - (4,224)
Exchange
differences on
translating
foreign
operations - - - (287,422) - - (287,422)
Net loss for the
period - - - - - (1,472,456) (1,472,456)
----------------- ---------- --------- ----------- ----------- ----------- ----------- ----------
Balance, June 30,
2020 $50,123,910 $ - $ 8,367,356 $ 509,332 $ 248,078 $(46,789,804) $12,458,872
----------------- ---------- --------- ----------- ----------- ----------- ----------- ----------
Balance, December
31, 2020 $52,933,594 $ 340,000 $ 8,381,382 $ 1,012,739 $ - $(48,545,800) $14,121,915
Shares issued in
private
placement (note
11(b)(i)) 7,998,980 - - - - - 7,998,980
Warrants issued
(note 11(b)(i)) (3,258,578) 3,258,578 - - - - -
Warrants issued
(note 10(ii)) - 670,000 - - - - 670,000
Share issue
costs (note
11(b)(i)) (792,045) 8,783 - - - - (783,262)
Warrant
extension (note
10(i)) - 251,000 - - - - 251,000
Stock-based
compensation
(note 11(d)) - - 1,235,141 - - - 1,235,141
Exercise of
warrants 677,647 (347,647) - - - - 330,000
Exchange
differences on
translating
foreign
operations - - - (295,294) - - (295,294)
Net loss for the
period - - - - - (3,528,531) (3,528,531)
----------------- ---------- --------- ----------- ----------- ----------- ----------- ----------
Balance, June 30,
2021 $57,559,598 $4,180,714 $ 9,616,523 $ 717,445 $ - $(52,074,331) $19,999,949
----------------- ---------- --------- ----------- ----------- ----------- ----------- ----------
The notes to the unaudited condensed interim consolidated
financial statements are an integral part of these statements.
Galantas Gold Corporation
Notes to Condensed Interim Consolidated Financial Statements
Three and Six Months Ended June 30, 2021
(Expressed in Canadian Dollars)
(Unaudited)
-------------------------------------------------------------
1. Going Concern
These unaudited condensed interim consolidated financial
statements have been prepared on a going concern basis which
contemplates that Galantas Gold Corporation (the "Company") will be
able to realize assets and discharge liabilities in the normal
course of business. In assessing whether the going concern
assumption is appropriate, management takes into account all
available information about the future, which is at least, but is
not limited to, twelve months from the end of the reporting period.
Management is aware, in making its assessment, of uncertainties
related to events or conditions that may cast doubt on the
Company's ability to continue as a going concern. The Company's
future viability depends on the consolidated results of the
Company's wholly-owned subsidiary Cavanacaw Corporation
("Cavanacaw"). Cavanacaw has a 100% shareholding in both Flintridge
Resources Limited ("Flintridge") who are engaged in the
acquisition, exploration and development of gold properties, mainly
in Omagh, Northern Ireland and Omagh Minerals Limited ("Omagh") who
are engaged in the exploration of gold properties, mainly in the
Republic of Ireland. The Omagh mine has an open pit mine, which was
in production until 2013 when production was suspended and is
reported as property, plant and equipment and as an underground
mine which having established technical feasibility and commercial
viability in December 2018 has resulted in associated exploration
and evaluation assets being reclassified as an intangible
development asset and reported as property, plant and
equipment.
The going concern assumption is dependent upon forecast cash
flows being met, further financing currently being negotiated. The
directors assumptions in relation to future levels of production,
gold prices and mine operating and capital costs are crucial to
forecast cash flows being achieved. Should production be
significantly delayed, revenues fall short of expectations or
operating costs and capital costs increase significantly, there may
be insufficient cash flows to sustain day to day operations without
seeking further finance.
Negotiations with current finance providers to extend short-term
loans have progressed positively and the maturity dates for both
the G&F Phelps Ltd. ("G&F Phelps") and Ocean Partners loans
have now been extended to December 31, 2023. The Company also
raised gross proceeds of $8M through the issuance of shares to new
and current investors to meet the financial requirements of the
Company for the foreseeable future. Based on the financial
projections prepared, the directors believe it's appropriate to
prepare the unaudited condensed interim consolidated financial
statements on the going concern basis.
As at June 30, 2021, the Company had a deficit of $52,074,331
(December 31, 2020 - $48,545,800). Comprehensive loss for the six
months ended June 30, 2021 was $3,823,825 (six months ended June
30, 2020 - $1,759,878). These conditions raise material
uncertainties which may cast significant doubt as to whether the
Company will be able to continue as a going concern. However,
management is confident that it will continue as a going concern.
However, this is subject to a number of factors including market
conditions.
These unaudited condensed interim consolidated financial
statements do not reflect adjustments to the carrying values of
assets and liabilities, the reported expenses and financial
position classifications used that would be necessary if the going
concern assumption was not appropriate. These adjustments could be
material.
2. Incorporation and Nature of Operations
The Company was formed on September 20, 1996 under the name
Montemor Resources Inc. on the amalgamation of 1169479 Ontario Inc.
and Consolidated Deer Creek Resources Limited. The name was changed
to European Gold Resources Inc. by articles of amendment dated July
25, 1997. On May 5, 2004, the Company changed its name from
European Gold Resources Inc. to Galantas Gold Corporation. The
Company was incorporated to explore for and develop mineral
resource properties, principally in Europe. In 1997, it purchased
all of the shares of Omagh which owns a mineral property in
Northern Ireland, including a delineated gold deposit. Omagh
obtained full planning and environmental consents necessary to
bring its property into production.
The Company entered into an agreement on April 17, 2000,
approved by shareholders on June 26, 2000, whereby Cavanacaw, a
private Ontario corporation, acquired Omagh. Cavanacaw has
established an open pit mine to extract the Company's gold deposit
near Omagh, Northern Ireland. Cavanacaw also has developed a
premium jewellery business founded on the gold produced under the
name Galántas Irish Gold Limited ("Galántas"). As at July 1, 2007,
the Company's Omagh mine began production and in 2013 production
was suspended. On April 1, 2014, Galántas amalgamated its jewelry
business with Omagh.
On April 8, 2014, Cavanacaw acquired Flintridge. Following a
strategic review of its business by the Company during 2014 certain
assets owned by Omagh were acquired by Flintridge.
On April 17, 2020, the Company completed a share consolidation
of its share capital on the basis of ten existing common shares for
one new common share consolidation.
The Company's operations include the consolidated results of
Cavanacaw, and its wholly-owned subsidiaries Omagh, Galántas and
Flintridge.
The Company's common shares are listed on the TSX Venture
Exchange ("TSXV") and London Stock Exchange AIM under the symbol
GAL. The primary office is located at The Canadian Venture
Building, 82 Richmond Street East, Toronto, Ontario, Canada, M5C
1P1.
In March 2020, the World Health Organization declared
coronavirus (COVID-19) a global pandemic. This contagious disease
outbreak, which has continued to spread, has adversely affected
workforces, economies, and financial markets globally, leading to
an economic downturn. It is not possible for the Company to predict
the duration or magnitude of the adverse results of the outbreak
and its effects on the Company's business or ability to raise
funds.
3. Basis of Preparation
Statement of compliance
The Company applies International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board
("IASB") and interpretations issued by the International Financial
Reporting Interpretations Committee ("IFRIC"). These unaudited
condensed interim consolidated financial statements have been
prepared in accordance with International Accounting Standard 34 -
Interim Financial Reporting. Accordingly, they do not include all
of the information required for full annual financial
statements.
The policies applied in these unaudited condensed interim
consolidated financial statements are based on IFRS issued and
outstanding as of August 27, 2021 the date the Board of Directors
approved the statements. The same accounting policies and methods
of computation are followed in these unaudited condensed interim
consolidated financial statements as compared with the most recent
annual consolidated financial statements as at and for the year
ended December 31, 2020. Any subsequent changes to IFRS that are
given effect in the Company's annual consolidated financial
statements for the year ending December 31, 2021 could result in
restatement of these unaudited condensed interim consolidated
financial statements.
4. Accounts Receivable and Prepaid Expenses
As at As at
June 30, December 31,
2021 2020
----------------------------------------------- -------- ------------
Sales tax receivable - Canada $ 11,877 $ 3,987
Valued added tax receivable - Northern Ireland 160,635 56,422
Accounts receivable 524,448 295,510
Prepaid expenses 54,168 239,041
----------------------------------------------- -------- ------------
$ 751,128 $ 594,960
----------------------------------------------- -------- ------------
Prepaid expenses includes advances for consumables and for
construction of the passing bays in the Omagh mine.
The following is an aged analysis of receivables:
As at As at
June 30, December 31,
2021 2020
-------------------------- -------- ------------
Less than 3 months $ 443,683 $ 120,085
3 to 12 months 244,628 117,615
More than 12 months 8,649 118,219
-------------------------- -------- ------------
Total accounts receivable $ 696,960 $ 355,919
-------------------------- -------- ------------
5. Inventories
As at As at
June 30, December 31,
2021 2020
------------------------ -------- ------------
Concentrate inventories $ 143,858 $ 81,169
------------------------ -------- ------------
6. Property, Plant and Equipment
Freehold Plant
land and and Motor Office Development
Cost buildings machinery vehicles equipment assets (i) Total
-------------- --------- --------- -------- --------- ----------- ----------
Balance,
December 31,
2019 $2,369,610 $6,866,075 $ 160,637 $ 189,142 $ 19,016,904 $28,602,368
Additions - 2,781 - - 1,892,995 1,895,776
Cash receipts
from
concentrate
sales - - - - (1,792,209) (1,792,209)
Foreign
exchange
adjustment 28,561 82,352 1,934 2,280 227,986 343,113
-------------- --------- --------- -------- --------- ----------- ----------
Balance,
December 31,
2020 2,398,171 6,951,208 162,571 191,422 19,345,676 29,049,048
Additions - 391,309 - - 803,523 1,194,831
Foreign
exchange
adjustment (35,184) (101,486) (2,385) (2,808) (282,338) (424,200)
-------------- --------- --------- -------- --------- ----------- ----------
Balance, June
30, 2021 $2,362,987 $7,241,031 $ 160,186 $ 188,614 $ 19,866,861 $29,819,679
-------------- --------- --------- -------- --------- ----------- ----------
Freehold Plant
land and and Motor Office Development
Accumulated
depreciation buildings machinery vehicles equipment assets (i) Total
---------------- --------- --------- -------- --------- ----------- ---------
Balance,
December 31,
2019 $1,954,907 $5,259,569 $ 115,325 $ 112,851 $ - $7,442,652
Depreciation 7,910 322,574 13,252 11,460 - 355,196
Foreign exchange
adjustment 23,644 66,443 1,530 1,480 - 93,097
---------------- --------- --------- -------- --------- ----------- ---------
Balance,
December 31,
2020 1,986,461 5,648,586 130,107 125,791 - 7,890,945
Depreciation 3,106 146,390 4,846 4,811 - 159,153
Foreign exchange
adjustment (29,177) (83,982) (1,961) (1,897) - (117,017)
---------------- --------- --------- -------- --------- ----------- ---------
Balance, June
30, 2021 $1,960,390 $5,710,994 $ 132,992 $ 128,705 $ - $7,933,081
---------------- --------- --------- -------- --------- ----------- ---------
Freehold Plant
land and and Motor Office Development
Carrying value buildings machinery vehicles equipment assets (i) Total
-------------------- --------- --------- -------- --------- ----------- ----------
Balance, December
31, 2020 $ 411,710 $1,302,622 $ 32,464 $ 65,631 $ 19,345,676 $21,158,103
-------------------- --------- --------- -------- --------- ----------- ----------
Balance, June 30,
2021 $ 402,597 $1,530,037 $ 27,194 $ 59,909 $ 19,866,861 $21,886,598
-------------------- --------- --------- -------- --------- ----------- ----------
(i) Development assets are expenditures for the underground
mining operations in Omagh.
7. Exploration and Evaluation Assets
Exploration
and
evaluation
Cost assets
---------------------------- -----------
Balance, December 31, 2019 $ 661,726
Additions 129,031
Impairment (47,490)
Foreign exchange adjustment 7,474
---------------------------- -----------
Balance, December 31, 2020 750,741
Additions 87,456
Foreign exchange adjustment (11,015)
---------------------------- -----------
Balance, June 30, 2021 $ 827,182
---------------------------- -----------
Carrying value
---------------------------- -----------
Balance, December 31, 2020 $ 750,741
---------------------------- -----------
Balance, June 30, 2021 $ 827,182
---------------------------- -----------
8. Decommissioning Liability
The Company's decommissioning liability is a result of mining
activities at the Omagh mine in Northern Ireland. The Company
estimated its decommissioning liability at June 30, 2021 based on a
risk-free discount rate of 1% (December 31, 2020 - 1%) and an
inflation rate of 1.50% (December 31, 2020 - 1.50%). The expected
undiscounted future obligations allowing for inflation are GBP
330,000 and based on management's best estimate the decommissioning
is expected to occur over the next 5 to 10 years. On June 30, 2021,
the estimated fair value of the liability is $594,906 (December 31,
2020 - $598,275). Changes in the provision during the six months
ended June 30, 2021 are as follows:
As at As at
June 30, December 31,
2021 2020
----------------------------------------------- -------- ------------
Decommissioning liability, beginning of period $ 598,275 $ 580,303
Accretion 5,467 10,863
Foreign exchange (8,836) 7,109
----------------------------------------------- -------- ------------
Decommissioning liability, end of period $ 594,906 $ 598,275
----------------------------------------------- -------- ------------
As required by the Crown in Northern Ireland, the Company is
required to provide a bond for reclamation related to the Omagh
mine in the amount of GBP 300,000 (December 31, 2020 - GBP
300,000), of which GBP 300,000 was funded as of June 30, 2021 (GBP
300,000 was funded as of December 31, 2020) and reported as
long-term deposit of $513,780 (December 31, 2020 - $521,430).
9. Accounts Payable and Other Liabilities
Accounts payable and other liabilities of the Company are
principally comprised of amounts outstanding for purchases relating
to exploration costs on exploration and evaluation assets, general
operating activities and professional fees activities.
As at As at
June 30, December 31,
2021 2020
--------------------------------------------- --------- ------------
Accounts payable $1,044,199 $ 423,630
Accrued liabilities 1,346,516 926,512
--------------------------------------------- --------- ------------
Total accounts payable and other liabilities $2,390,715 $ 1,350,142
--------------------------------------------- --------- ------------
The following is an aged analysis of the accounts payable and
other liabilities:
As at As at
June 30, December 31,
2021 2020
--------------------------------------------- --------- ------------
Less than 3 months $1,606,891 $ 432,946
3 to 12 months 106,806 76,800
12 to 24 months 5,515 161,327
More than 24 months 671,504 679,069
--------------------------------------------- --------- ------------
Total accounts payable and other liabilities $2,390,716 $ 1,350,142
--------------------------------------------- --------- ------------
10. Financing Facilities
Amounts payable on the Company's financial facilities are as
follow:
As at As at
June 30, December 31,
2021 2020
---------------------------------------------------------------- ---------- ------------
Financing facilities, beginning of period (i) $ 2,186,272 $ 1,440,185
Financing facility received (i) - 262,460
Financing facility reallocated from due to related parties (ii) 4,578,039 -
Financing facility reallocated to due to related parties (i) (2,577,137) -
Less bonus warrants issued (i) - (340,000)
Less current portion - (2,186,272)
Repayment of financing facilities (i) (23,802) (49,705)
Accretion (i) 126,949 360,452
Interest (i) 86,820 214,377
Foreign exchange adjustment 224,333 298,503
---------------------------------------------------------------- ---------- ------------
Financing facilities - long term portion $ 4,601,474 $ -
---------------------------------------------------------------- ---------- ------------
(i) In April 2018, the Company signed a concentrate pre-payment
agreement and loan facility for US$1.6 million with a United
Kingdom based company (the "Lender"), with a maturity date of
December 31, 2020. The interest was set at US$ 12 month LIBOR +
8.75% and payable monthly. No interest shall be charged for 6
months and repayments commenced against deliveries in 2019. There
was a US$25,000 arrangement fee.
In respect of the loan facility, a fixed and floating security,
subordinated to an existing security to G&F Phelps, is being
put in place over Flintridge assets. G&F Phelps has a first
charge on Flintridge assets in respect of its loan facility and the
Lender required an intercreditor agreement between G&F Phelps
and the Lender.
As consideration for the loan facility, the United Kingdom based
company received 1,500,000 bonus warrants of the Company. Each
bonus warrant is exercisable into one common share of the Company
and is subject to an initial four months plus one day hold period
from the date of issuance of the bonus warrants. The bonus warrants
have a maximum life of two years (the "Expiry Time"). On April 19,
2018, the 1,500,000 bonus warrants were granted. In the event that
the weighted average closing price per common share of the Company
is more than $2.00 per share for more than five consecutive trading
days, the Company shall be entitled to accelerate the Expiry Time
to a date that is 30 days from the date on which the Company
announces the accelerated Expiry Time by press release.
The fair value of the 1,500,000 bonus warrants was estimated at
$786,000 using the Black-Scholes option pricing model with the
following assumptions: expected dividend yield - 0%, expected
volatility - 113.55%, risk-free interest rate - 1.91% and an
expected average life of 2 years.
On July 9, 2020, the Company amended the terms of its loan
facility of an increase in the outstanding loan facility. The
amount of the loan facility increased by US$200,000 to a total of
US$1.8 million. On November 12, 2020, the additional US$200,000
loan facility was drawn down by the Company. The interest rate
applicable on the loan facility increased from US$ 12 month LIBOR +
8.75% to US$ 12 month LIBOR + 9.9% and the maturity date was
extended from December 31, 2020 to December 31, 2021. Interest
could be rolled into the loan facility until December 31, 2021, at
the Company's option.
As consideration for amending the terms of the loan facility,
the Lender received on August 14, 2020, 1,700,000 bonus warrants of
Galantas ("Bonus Warrants"). Each Bonus Warrant will be exercisable
for one common share of Galantas (a "Bonus Share") at an exercise
price of $0.33 per Bonus Share. The Bonus Warrants will expire on
December 31, 2021 (the "Expiry Date") and the Bonus Shares will be
subject to an initial four month plus one day hold period from the
date of their issuance. In the event that the weighted average
closing price per common share of the Company is more than $0.4125
per share for more than five consecutive trading days, the Company
shall be entitled to accelerate the Expiry Date to a date that is
30 days from the date on which the Company announces the
accelerated Expiry Date by press release.
The fair value of the 1,700,000 bonus warrants was estimated at
$340,000 using the Black-Scholes option pricing model with the
following assumptions: expected dividend yield - 0%, expected
volatility - 165.75%, risk-free interest rate - 0.27% and an
expected average life of 1.38 years.
The maturity date of the loan facility due on December 31, 2021
has been extended to December 31, 2023. Interest may be deferred
and added to the balance outstanding until March 31, 2022, at which
point interest will be paid monthly. The 1,700,000 Bonus Warrants
issued have been extended.
(i) (continued) The Company recorded the incremental difference
of $251,000 as financing costs based on the fair value of these
warrants immediately prior to and after the modification. The fair
value of the 1,700,000 Bonus Warrants was valued immediately prior
to the subsequent extension using the following Black-Scholes
option pricing model with the following assumptions: expected
dividend yield - 0%, expected volatility - 123.98% to 144.48%,
risk-free interest rate - 0.32% and an expected average life of
0.63 to 2.63 years.
This amendment to the loan facility is considered to be a
modification of debt, accordingly, the fair value variances
originated by the amendment of $83,182 was immediately recorded
under financing costs in the unaudited condensed interim
consolidated statements of a loss.
During the three and six months ended June 30, 2021, the Company
recorded accretion expense of $25,145 and $126,949, respectively in
the unaudited condensed interim consolidated statements of loss in
regards with this loan facility (year ended December 31, 2020 -
$360,452).
During the three and six months ended June 30, 2021, the Company
recorded interest expense of $39,660 and $86,820, respectively in
the unaudited condensed interim consolidated statements of loss in
regards with this loan facility (year ended December 31, 2020 -
$214,377).
During the three and six months ended June 30, 2021, the Company
recorded a repayment of $nil and $23,802, respectively in regards
with this loan facility (year ended December 31, 2020 -
$49,705).
As at June 30, 2021, the Lender and the Company have a common
director. As a result, the balance due to the Lender was
reallocated from financing facilities to due to related parties.
Total balance reallocated consisted of $2,577,137. Refer to note
14(a)(iii).
(ii) In connection with the closing of the private placement
completed on May 14, 2021 (refer to note 11(b)(i)), Roland Phelps
has retired as the Company's President and Chief Executive Officer
and as a member of the Board of Directors. As a result, the balance
due to G&F Phelps, a company controlled by Roland Phelps was
reallocated from due to related parties to financing facilities.
Total balance reallocated consisted of $3,163,593 (GBP 1,824,764)
amalgamated loans balance and $1,414,446 (GBP 815,854) interest
accrued balance. Refer to note 14(a)(ii).
As at June 30, 2021, G&F Phelps had amalgamated loans to the
Company of $3,125,108 (GBP 1,824,774) (December 31, 2020 -
$3,171,622 - GBP 1,824,764) included with financing liabilities
(December 31, 2020 - due to related parties) bearing interest at 2%
above UK base rates, repayable on demand and secured by a mortgage
debenture on all the Company's assets. In April 2018, the interest
increased to 6.75% + US$ 12 month LIBOR. Interest accrued on
G&F Phelps loan is included with financing liabilities
(December 31, 2020 - included with due to related parties). As at
June 30, 2021, the amount of interest accrued is $1,476,366 (GBP
862,061) (December 31, 2020 - $1,339,503 - GBP 770,671).
The maturity date of the G&F Phelps loan has been extended
to December 31, 2023. Interest may be deferred and added to the
balance outstanding until March 31, 2022, at which point interest
will be paid monthly. In consideration for extending the G&F
loan and deferring interest, G&F Phelps has received, subject
to regulatory approval, 1,700,000 warrants exercisable into one
common share at an exercise price of $0.33, with said warrants
expiring on December 31, 2023.
The fair value of the 1,700,000 warrants was estimated at
$670,000 using the following Black-Scholes option pricing model
with the following assumptions: expected dividend yield - 0%,
expected volatility - 123.98% to 144.48%, risk-free interest rate -
0.32% and an expected average life of 2.63 years. The $670,000 was
recorded as financing costs in the unaudited condensed interim
consolidated statements of a loss.
11. Share Capital and Reserves
a) Authorized share capital
At June 30, 2021, the authorized share capital consisted of an
unlimited number of common and preference shares issuable in
Series.
The common shares do not have a par value. All issued shares are
fully paid.
No preference shares have been issued. The preference shares do
not have a par value.
b) Common shares issued
At June 30, 2021, the issued share capital amounted to
$57,559,598. The continuity of issued share capital for the periods
presented is as follows:
Number of
common
shares Amount
--------------------------------------------- ---------- ----------
Balance, December 31, 2019 and June 30, 2020 32,321,472 $50,123,910
---------------------------------------------- ---------- ----------
Balance, December 31, 2020 46,565,537 $52,933,594
Shares issued in private placement (i) 26,663,264 7,998,980
Warrants issued (i) - (3,258,578)
Share issue costs (i) 41,667 (792,045)
Exercise of warrants 1,000,000 677,647
---------------------------------------------- ---------- ----------
Balance, June 30, 2021 74,270,468 $57,559,598
---------------------------------------------- ---------- ----------
(i) On May 14, 2021, Galantas completed a private placement of
26,663,264 units at a price of $0.30 per unit for aggregate gross
proceeds of $7,998,980. Each unit comprises one common share and
one common share purchase warrant. Each warrant will be exercisable
into one additional common share at an exercise price of $0.40 for
24 months from the closing date of the private placement. There is
a four-month and one day hold period on the trading of securities
issued in connection with this private placement.
The fair value of the 26,663,264 warrants was estimated at
$3,258,578 using the Black-Scholes option pricing model with the
following assumptions: expected dividend yield - 0%, expected
volatility - 155.08%, risk-free interest rate - 0.32% and an
expected average life of 2 years.
Ocean Partners acquired 1,666,667 units of the private
placement, for consideration of $500,000 and the Company paid a
finder's fee of 41,667 units to Ocean Partners resulting in the
issuance of 1,708,334 common shares or 2.3% of the Company's issued
and outstanding common shares on a non-diluted basis.
The 41,667 units paid as a finder's fee were valued at $20,417.
The fair value of the 41,667 warrants was estimated at $8,783 using
the Black-Scholes option pricing model with the following
assumptions: expected dividend yield - 0%, expected volatility -
155.08%, risk-free interest rate - 0.32% and an expected average
life of 2 years.
(i) (continued) Roland Phelps, the Company's retired President
and Chief Executive Officer, acquired 166,667 units for
consideration of $50,000, increasing his holding to 5,100,484
common shares or 6.9% of the Company's issued and outstanding
common shares on a non-diluted basis.
In respect of an under-writing by Ocean Partners, the Company
paid a commitment fee of $112,500 in cash.
c) Warrant reserve
The following table shows the continuity of warrants for the
periods presented:
Weighted
average
Number of exercise
warrants price
----------------------------------- ---------- --------
Balance, December 31, 2019 1,500,000 $ 1.58
Expired (1,500,000) 1.58
------------------------------------ ---------- --------
Balance, June 30, 2020 - $ -
----------------------------------- ---------- --------
Balance, December 31, 2020 1,700,000 $ 0.33
Issued (notes 10(ii) and 11(b)(i)) 28,404,931 0.40
Exercised (1,000,000) 0.33
------------------------------------ ---------- --------
Balance, June 30, 2021 29,104,931 $ 0.39
------------------------------------ ---------- --------
The following table reflects the actual warrants issued and
outstanding as of June 30, 2021:
Grant date Exercise
Number fair value price
Expiry date of warrants ($) ($)
------------------ ----------- ---------- --------
May 14, 2023 26,704,931 3,267,361 0.40
December 31, 2023 2,400,000 913,353 0.33
------------------- ----------- ---------- --------
29,104,931 4,180,714 0.39
------------------ ----------- ---------- --------
d) Stock options
The following table shows the continuity of stock options for
the periods presented:
Weighted
average
Number of exercise
options price
--------------------------- --------- --------
Balance, December 31, 2019 1,395,000 $ 0.92
Expired (285,000) 1.05
Cancelled (iii) (515,000) 1.01
---------------------------- --------- --------
Balance, June 30, 2020 595,000 $ 1.15
---------------------------- --------- --------
Balance, December 31, 2020 570,000 $ 1.16
Granted (i)(ii) 4,340,000 0.85
---------------------------- --------- --------
Balance, June 30, 2021 4,910,000 $ 0.88
---------------------------- --------- --------
(i) On May 19, 2021, the Company granted 3,915,000 stock options
to directors, employees and consultants of the Company to purchase
common shares at $0.86 per share until May 19, 2026. The options
will vest as to one third immediately and one third on each of May
19, 2022 and May 19, 2023. The fair value attributed to these
options was $2,907,000 and was expensed in the unaudited condensed
interim consolidated statements of loss and credited to equity
settled share-based payments reserve. During the three and six
months ended June 30, 2021, included in stock-based compensation is
$1,136,252 related to the vested portion of these options.
(ii) On June 21, 2021, the Company granted 425,000 stock options
to consultants and officers of the Company to purchase common
shares at $0.73 per share until June 21, 2026. The options will
vest as to one third immediately and one third on each of June 21,
2022 and June 21, 2023. The fair value attributed to these options
was $266,000 and was expensed in the unaudited condensed interim
consolidated statements of loss and credited to equity settled
share-based payments reserve. During the three and six months ended
June 30, 2021, included in stock-based compensation is $91,946
related to the vested portion of these options.
(iii) The portion of the estimated fair value of options granted
in the prior years and vested during the three and six months ended
June 30, 2021, amounted to $2,312 and $6,943, respectively (three
and six months ended June 30, 2020 - $12,064 and $53,286,
respectively). In addition, during the three and six months ended
June 30, 2021, nil options granted in the prior years were
cancelled (three and six months ended June 30, 2020 - 515,000
options cancelled) and therefore, $nil (three and six months ended
June 30, 2020 - $nil and $57,510, respectively) of stock-based
compensation was reversed related to the unvested portion of the
options cancelled.
The following table reflects the actual stock options issued and
outstanding as of June 30, 2021:
Weighted average Number of
remaining Number of options Number of
Exercise contractual options vested options
Expiry date price ($) life (years) outstanding (exercisable) unvested
------------------ --------- ---------------- ----------- ------------- ---------
March 25, 2022 1.35 0.73 320,000 320,000 -
April 19, 2023 1.10 1.80 25,000 25,000 -
February 13, 2024 0.90 2.62 125,000 125,000 -
June 27, 2024 0.90 2.99 100,000 100,000 -
May 19, 2026 0.86 4.89 3,915,000 1,305,000 2,610,000
June 21, 2026 0.73 4.98 425,000 141,667 283,333
------------------ --------- ---------------- ----------- ------------- ---------
0.88 4.51 4,910,000 2,016,667 2,893,333
------------------ --------- ---------------- ----------- ------------- ---------
12. Net Loss per Common Share
The calculation of basic and diluted loss per share for the
three and six months ended June 30, 2021 was based on the loss
attributable to common shareholders of $2,888,568 and $3,528,531,
respectively (three and six months ended June 30, 2020 - $792,141
and $1,472,456, respectively) and the weighted average number of
common shares outstanding of 60,494,975 and 53,501,436,
respectively (three and six months ended June 30, 2020 - 32,321,472
and 32,321,472, respectively) for basic and diluted loss per share.
Diluted loss did not include the effect of 29,104,931 warrants
(three and six months ended June 30, 2020 - nil) and 4,910,000
options (three and six months ended June 30, 2020 - 595,000) for
the three and six months ended June 30, 2021, as they are
anti-dilutive.
13. Revenues
Shipments of concentrate under the off-take arrangements
commenced during the second quarter of 2019. Concentrate sales
provisional revenues during the three and six months ended June 30,
2021 totaled approximately US$218,000 and US$785,000, respectively
(three and six months ended June 30, 2020 - US$nil and US$186,000,
respectively). However, until the mine reaches the commencement of
commercial production, the net proceeds from concentrate sales will
be offset against Development assets.
14. Related Party Disclosures
Related parties include the Board of Directors, close family
members, other key management individuals and enterprises that are
controlled by these individuals as well as certain persons
performing similar functions.
Related party transactions conducted in the normal course of
operations are measured at the fair value and approved by the Board
of Directors in strict adherence to conflict of interest laws and
regulations.
(a) The Company entered into the following transactions with
related parties:
Three Months Ended Six Months Ended
June 30, June 30,
Note 2021 2020 2021 2020
-------------------------------- ----- --------- -------- -------- -------
Interest on related party loans (i) $ 39,660 $ 79,872 $ 118,536 $166,405
-------------------------------- ----- --------- -------- -------- -------
(i) Refer to note 10(i)(ii).
(ii) Refer to note 11(b)(i).
(iii) As at June 30, 2021, the Lender and the Company have a
common director. As a result, the balance due to the Lender was
reallocated from financing facilities to due to related parties.
Total balance reallocated consisted of $2,577,137. Refer to note
10(i).
(b) Remuneration of officer and directors of the Company was as
follows:
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
-------------------------- --------- -------- -------- -------
Salaries and benefits (1) $ 50,380 $ 117,228 $ 167,986 $231,727
Stock-based compensation 828,180 6,412 830,438 15,726
-------------------------- --------- -------- -------- -------
$ 878,560 $ 123,640 $ 998,424 $247,453
-------------------------- --------- -------- -------- -------
(1) Salaries and benefits include director fees. As at June 30,
2021, due to directors for fees amounted to $64,250 (December 31,
2020 - $126,536) and due to officers, mainly for salaries and
benefits accrued amounted to $36,592 (December 31, 2020 - $782,145
- GBP 458,701), and is included with due to related parties.
(c) As of June 30, 2021, Ross Beaty owns 3,744,747 common shares
of the Company or approximately 5.04% of the outstanding common
shares. Roland Phelps, former Chief Executive Officer and former
director, owns, directly and indirectly, 5,100,484 common shares of
the Company or approximately 6.87% of the outstanding common shares
of the Company. Premier Miton owns 4,848,243 common shares of the
Company or approximately 6.53%. Melquart owns, directly and
indirectly, 23,073,528 common shares of the Company or
approximately 31.07% of the outstanding common shares of the
Company. Eric Sprott owns 6,333,333 common shares of the Company or
approximately 8.53%. Mike Gentile owns 4,000,000 common shares of
the Company or approximately 5.39%. The remaining 36.57% of the
shares are widely held, which includes various small holdings which
are owned by directors of the Company. These holdings can change at
anytime at the discretion of the owner.
The Company is not aware of any arrangements that may at a
subsequent date result in a change in control of the Company.
15. Segment Disclosure
The Company has determined that it has one reportable segment.
The Company's operations are substantially all related to its
investment in Cavanacaw and its subsidiaries, Omagh and Flintridge.
Substantially all of the Company's revenues, costs and assets of
the business that support these operations are derived or located
in Northern Ireland. Segmented information on a geographic basis is
as follows:
June 30, 2021 United Kingdom Canada Total
------------------- -------------- --------- ----------
Current assets $ 1,072,639 $5,964,824 $ 7,037,463
Non-current assets $ 23,170,402 $ 57,158 $23,227,560
Revenues $ - $ - $ -
------------------- -------------- --------- ----------
December 31, 2020 United Kingdom Canada Total
------------------- -------------- --------- ----------
Current assets $ 1,232,744 $ 55,479 $ 1,288,223
Non-current assets $ 22,373,581 $ 56,793 $22,430,374
Revenues $ - $ - $ -
------------------- -------------- --------- ----------
16. Contingency
During the year ended December 31, 2010, the Company's
subsidiary Omagh received a payment demand from Her Majesty's
Revenue and Customs ("HMRC") in the amount of $521,127 (GBP
304,290) in connection with an aggregate levy arising from the
removal of waste rock from the mine site during 2008 and early
2009. Omagh Minerals believed this claim to be without merit. An
appeal was lodged with the Tax Tribunals Service and the hearing
started at the beginning of March 2017 and following a number of
adjournments was completed in August 2018. During the year ended
December 31, 2019, the Tax Tribunals Service issued their judgement
dismissing the appeal by Omagh in respect of the assessments. A
provision has now been included in the unaudited condensed interim
consolidated financial statements in respect of the aggregates levy
plus interest and penalty.
There is a contingent liability in respect of potential
additional interest which may be applied in respect of the
aggregates levy dispute. Omagh is unable to make a reliable
estimate of the amount of the potential additional interest that
may be applied by HMRC.
17. Events After the Reporting Period
On July 26, 2021, the Company announced that it has retained
Independent Trading Group ("ITG") to provide market making services
in accordance with TSXV policies.
ITG will trade the securities of Galantas on the TSXV for the
purposes of maintaining an orderly market. In consideration of the
services provided by ITG, the Company will pay ITG a monthly cash
fee of $5,000 for a minimum term of three months and renewable
thereafter. Galantas and ITG are unrelated and unaffiliated
entities. ITG will not receive shares or options as compensation.
The capital used for market making will be provided by ITG.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR WPURURUPGGMU
(END) Dow Jones Newswires
August 31, 2021 02:00 ET (06:00 GMT)
Galantas Gold (LSE:GAL)
Historical Stock Chart
From Mar 2024 to Mar 2024
Galantas Gold (LSE:GAL)
Historical Stock Chart
From Mar 2023 to Mar 2024