We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Galantas Gold Corporation | LSE:GAL | London | Ordinary Share | CA36315W3012 | COM SHS NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 12.50 | 11.50 | 13.50 | 12.50 | 12.50 | 12.50 | 4,575 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -16.63M | -0.1448 | -1.38 | 22.97M |
From Apr 2019 to Apr 2024
TIDMGAL
RNS Number : 8155O
Galantas Gold Corporation
24 August 2017
GALANTAS GOLD CORPORATION
TSXV & AIM : Symbol GAL
GALANTAS REPORTS RESULTS FOR THE THREE AND SIX MONTHSED JUNE 30, 2017
August 24th, 2017: Galantas Gold Corporation (the 'Company') is pleased to announce its financial results for the three and six months ended June 30, 2017.
Financial Highlights
Highlights of the 2017 second quarter's and first six month's results, which are expressed in Canadian Dollars, are summarized below:
Hot Features
Premium
All figures denominated in Canadian Dollars (CDN$)
Second Quarter Ended Six Months Ended
June 30 June 30
2017 2016 2017 2016
-------------------------------------------------------- ---------------------------- ------------------------------
Revenue $ 16,607 $ 1,648 $ 19,341 $ 29,721
-------------------------------------------------------- ------------- ------------- --------------- -------------
Cost of Sales $ (111,605) $ (88,572) $ (175,021) $ (210,103)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Loss before the undernoted $ (94,998) $ (86,924) $ (155,680) $ (180,382)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Depreciation $ (50,887) $ (42,732) $ (90,942) $ (90,283)
-------------------------------------------------------- ------------- ------------- --------------- -------------
General administrative expenses $ (497,235) $ (419,506) $ (999,351) $ (755,617)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Gain on sale of property, plant and equipment $ 0 $ 5,479 $ 0 $ 5,479
-------------------------------------------------------- ------------- ------------- --------------- -------------
Unrealized gain on fair value of derivative financial
liability $ 28,000 $ 1,000 $ 6,000 $ 80,000
-------------------------------------------------------- ------------- ------------- --------------- -------------
Foreign exchange gain / (loss) $ 103,244 $ (103,146) $ 43,863 $ (78,371)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Net Loss for the period $ ( 511,876) $ (645,829) $ (1,196,110) $ (1,019,174)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Working Capital Deficit $ (2,328,303) $ (2,068,440) $ (2,328,303) $(2,068,440)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Cash loss from operating activities before changes in
non-cash working capital $ (404,783) $ (559,908) $ (799,382) $ (932,050)
-------------------------------------------------------- ------------- ------------- --------------- -------------
Cash at June 30, 2017 $ 1,681,739 $ 1,312,989 $ 1,681,739 $ 1,312,989
-------------------------------------------------------- ------------- ------------- --------------- -------------
The Net Loss for the three months ended June 30, 2017 amounted to CDN$ 511,876 (2016:CDN$ 645,829) and the cash loss from operating activities before changes in non-cash working capital for the second quarter of 2017 amounted to CDN$ 404,783 (2016 Q2: CDN$ 559,908). The Net Loss for the six months ended June 30, 2017 amounted to CDN $ 1,196,110 (2016:CDN$ 1,019,174) and the cash loss from operating activities before changes in non-cash working capital for the first six months of 2017 amounted to CDN$ 799,382 (2016: CDN$ 932,050).
Production and sales of concentrate await the mining of feed from underground.
Cost of sales, which includes production costs and inventory movement, for the second quarter and six months ended June 30, 2017 amounted to CDN$ 111,605 and $ 175,021 respectively (2016: CDN$ 88,572 and $ 210,103). Production costs were mainly in connection with ongoing care, maintenance and restoration costs at the Omagh mine site. Costs related to underground mine development were capitalized.
The Company had cash balances of $ 1,681,739 at June 30, 2017 compared to $ 1,312,989 at June 30, 2016. The working capital deficit at June 30, 2017 amounted to $ 2,328,303 compared to a working capital deficit of $ 2,068,440 at June 30, 2016.
Production
Planning consent was granted during the second quarter of 2015 for an underground operation at the Omagh site. That consent is subject to a judicial review, the judgement of which is awaited. The underground mine, which is now in active development, will utilize the same processing methods as the open pit mine and will be the first underground gold mine, of any scale, in Ireland. The strategy is to expand the continuing development of the underground mine as soon as additional finance is available and look for further expansion of gold resources on the property, which has many undrilled targets.
The phased development arrangement, in terms of mine access dimensions, is expected to allow for rapid expansion of production as additional capital becomes available. The mill has now been re-commissioned in anticipation of a restarting of concentrate shipments, subject to suitable financing. A budget of GBP 2,000,000 (excluding lease finance) for the first phase of underground mining has been estimated. The Company has not entered into lease finance arrangements in regard to mining equipment as of yet, having secured used equipment suitable for current purposes at lower cost. During the first quarter of 2017 and following the closure of a part-brokered private placement for aggregate gross proceeds of $ 2,446,299 (approximately UKGBP 1,482,875) the Company announced that underground development had commenced on the Omagh gold property.
Post period end, Galantas reported early in the third quarter of 2017 that a narrow stringer vein, an offshoot of the Kearney system had been intersected some 47 metres in from the tunnel portal. The vein was reported as a minimum of 0.5 metres true width. Subsequent results of grab samples have returned values of between 1.1- 11.0 g/t gold and 1.4 - 7.0 g/t silver. Structural analysis, supported by the data in the tunnel intersect, indicates that a second intersection with a potential continuation of the stringer vein is likely. Arrangements are being put in place to develop vein drivages to exploit the stringer vein. This is expected to provide feed to the processing plant in the fourth quarter whilst the tunnel development continues to progress towards accessing the principal target, which are the main Kearney veins. Arrangements with the Police Service Northern Ireland regarding blasting have been working efficiently and improved blasting arrangements have been formalised. The improved arrangements are expected to accelerate development progress and arrangements are being put in hand for the hiring of some additional personnel.
Two additional ground-water monitoring boreholes have been drilled and monitoring data collected. Water make within the tunnel is minimal and water monitoring at the site continues to demonstrate good compliance within the criteria set down by the regulatory authority.
Exploration
A new exploration programme commenced in September 2015 to target the Joshua vein at depth. In total, 3,602 metres were drilled by March 2016. In early 2016 Galantas reported the assay results for three holes completed in 2015 (see press release dated January 26, 2016). Most notable was hole OML-DD-15-155 which intersected a wide zone (13 m true width) of the Joshua vein at a vertical depth of 117 m grading 9.9 g/t Au. This drilling programme also identified a new vein, Kestrel, running 70 m west of Joshua. An initial shallow (42.4 m) intersect returned 35.8 g/t Au over 0.7 m true width. A further drill hole targeted the Kestrel vein 80 metres north and hit mineralisation at a vertical depth of 73 m (3.2 g/t Au over 1.2 m true width).
Roland Phelps, President and CEO of Galantas Gold Corporation, commented, "I am very pleased with the progress made this quarter on developing the underground mine and I congratulate the Galantas team in Omagh on their excellent achievements. I note particularly that lost time accidents were zero and water monitoring results were compliant."
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.
http://www.rns-pdf.londonstockexchange.com/rns/8155O_-2017-8-23.pdf
Qualified Person
The financial components of this disclosure has been reviewed by Leo O' Shaughnessy (Chief Financial Officer) and the production, exploration and permitting components by Roland Phelps (President & CEO), 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.
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, Harrison Clarke:
Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker:
Telephone: +44(0)20 7659 1234
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,
2017 2016
----------------------------------------------------- ----------- ------------
ASSETS
Current assets
Cash $ 1,681,739 $ 557,005
Accounts receivable and prepaid expenses (note 4) 148,043 106,732
Inventories (note 5) 15,007 23,852
----------------------------------------------------- ----------- ------------
Total current assets 1,844,789 687,589
Non-current assets
Property, plant and equipment (note 6) 7,864,314 7,449,991
Long-term deposit (note 8) 505,860 496,920
Exploration and evaluation assets (note 7) 2,640,411 2,294,254
----------------------------------------------------- ----------- ------------
Total non-current assets 11,010,585 10,241,165
----------------------------------------------------- ----------- ------------
Total assets $ 12,855,374 $ 10,928,754
----------------------------------------------------- ----------- ------------
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and other liabilities (note 9) $ 1,034,542 $ 893,570
Current portion of financing facility (note 10) 5,595 4,956
Due to related parties (note 14) 3,132,955 2,884,187
----------------------------------------------------- ----------- ------------
Total current liabilities 4,173,092 3,782,713
Non-current liabilities
Non-current portion of financing facility (note 10) 22,784 25,265
Decommissioning liability (note 8) 543,135 528,305
Derivative financial liability (note 11(c)) 18,000 24,000
----------------------------------------------------- ----------- ------------
Total non-current liabilities 583,919 577,570
----------------------------------------------------- ----------- ------------
Total liabilities 4,757,011 4,360,283
----------------------------------------------------- ----------- ------------
Capital and reserves
Share capital (note 11(a)(b)) 38,643,022 36,331,577
Reserves 7,440,614 7,026,057
Deficit (37,985,273) (36,789,163)
----------------------------------------------------- ----------- ------------
Total equity 8,098,363 6,568,471
----------------------------------------------------- ----------- ------------
Total equity and liabilities $ 12,855,374 $ 10,928,754
----------------------------------------------------- ----------- ------------
The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.
Going concern (note 1)
Contingency (note 16)
Galantas Gold Corporation
Condensed Interim Consolidated Statements of Loss
(Expressed in Canadian Dollars)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
------------------------------------------ ----------- ----------- ----------- -----------
Revenues
Gold sales $ 16,607 $ 1,648 $ 19,341 $ 29,721
Cost and expenses of operations
Cost of sales (note 13) 111,605 88,572 175,021 210,103
Depreciation (note 6) 50,887 42,732 90,942 90,283
------------------------------------------ ----------- ----------- ----------- -----------
162,492 131,304 265,963 300,386
------------------------------------------ ----------- ----------- ----------- -----------
Loss before general administrative and
other (incomes) expenses (145,885) (129,656) (246,622) (270,665)
------------------------------------------ ----------- ----------- ----------- -----------
General administrative expenses
Management and administration wages
(note 14) 158,014 165,550 304,742 343,493
Other operating expenses 98,247 22,590 121,261 44,147
Accounting and corporate 16,191 15,768 30,090 31,233
Legal and audit 47,451 97,064 80,737 147,466
Stock-based compensation (note
11(d)(i)) 80,506 - 301,087 -
Shareholder communication and
investor relations 61,991 78,998 100,172 118,078
Transfer agent 5,605 7,609 7,580 9,232
Director fees (note 14) 8,500 8,250 13,500 13,250
General office 1,949 1,933 3,910 3,882
Accretion expenses (note 8) 2,717 2,916 5,307 6,018
Loan interest and bank charges (note
14) 16,064 18,828 30,965 38,818
------------------------------------------ ----------- ----------- ----------- -----------
497,235 419,506 999,351 755,617
Other (incomes) expenses
Gain on disposal of property, plant
and equipment - (5,479) - (5,479)
Unrealized gain on fair value of
derivative financial liability
(note 11(c)) (28,000) (1,000) (6,000) (80,000)
Foreign exchange (gain) loss (103,244) 103,146 (43,863) 78,371
------------------------------------------ ----------- ----------- ----------- -----------
(131,244) 96,667 (49,863) (7,108)
------------------------------------------ ----------- ----------- ----------- -----------
Net loss for the period $ (511,876) $ (645,829) $ (1,196,110) $ (1,019,174)
------------------------------------------ ----------- ----------- ----------- -----------
Basic and diluted net loss per share (note
12) $ (0.00) $ (0.01) $ (0.01) $ (0.01)
------------------------------------------ ----------- ----------- ----------- -----------
Weighted average number of common shares
outstanding - basic and diluted 170,894,087 114,263,285 160,616,924 110,765,807
------------------------------------------ ----------- ----------- ----------- -----------
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 Other Comprehensive Income (Loss)
(Expressed in Canadian Dollars)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
-------------------------------------------- --------- ----------- ----------- -----------
Net loss for the period $ (511,876) $ (645,829) $ (1,196,110) $ (1,019,174)
Other comprehensive income (loss)
Items that will be reclassified subsequently
to profit or loss
Foreign currency translation differences 56,765 (536,851) 113,470 (1,172,724)
-------------------------------------------- --------- ----------- ----------- -----------
Total comprehensive loss $ (455,111) $ (1,182,680) $ (1,082,640) $ (2,191,898)
-------------------------------------------- --------- ----------- ----------- -----------
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,
2017 2016
-------------------------------------------------------------------------------- ----------- -----------
Operating activities
Net loss for the period $ (1,196,110) $ (1,019,174)
Adjustment for:
Depreciation (note 6) 90,942 90,283
Stock-based compensation (note 11(d)(i)) 301,087 -
Interest expense 28,968 18,497
Foreign exchange (gain) loss (23,576) 57,805
Gain on disposal of property, plant and equipment - (5,479)
Accretion expenses (note 8) 5,307 6,018
Unrealized loss (gain) on fair value of derivative financial liability (note
11(c)) (6,000) (80,000)
Non-cash working capital items:
Accounts receivable and prepaid expenses (38,856) 40,814
Inventories 9,110 14,489
Accounts payable and other liabilities 124,308 (419,505)
Due to related parties 174,284 132,319
-------------------------------------------------------------------------------- ----------- -----------
Net cash used in operating activities (530,536) (1,163,933)
-------------------------------------------------------------------------------- ----------- -----------
Investing activities
Purchase of property, plant and equipment (371,546) (361,780)
Proceeds from sale of property, plant and equipment - 34,548
Exploration and evaluation assets (305,963) (22,045)
-------------------------------------------------------------------------------- ----------- -----------
Net cash used in investing activities (677,509) (349,277)
-------------------------------------------------------------------------------- ----------- -----------
Financing activities
Proceeds of private placement 2,446,299 1,466,312
Share issue costs (134,854) (30,777)
Repayment of financing facility (1,842) (6,537)
-------------------------------------------------------------------------------- ----------- -----------
Net cash provided by financing activities 2,309,603 1,428,998
-------------------------------------------------------------------------------- ----------- -----------
Net change in cash 1,101,558 (84,212)
Effect of exchange rate changes on cash held in foreign currencies 23,176 (121,131)
Cash, beginning of period 557,005 1,518,332
-------------------------------------------------------------------------------- ----------- -----------
Cash, end of period $ 1,681,739 $ 1,312,989
-------------------------------------------------------------------------------- ----------- -----------
Supplemental information
Shares issued to settle due to related parties (note 11(b)(ii)) $ - $ 935,852
-------------------------------------------------------------------------------- ----------- -----------
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
share-based currency
Share payments Warrant translation
capital reserve reserve reserve Deficit Total
------------------- ----------- ----------- -------- ----------- ----------- ----------
Balance, December
31, 2015 $ 33,960,190 $ 5,809,109 $ 766,000 $ 1,903,837 $(35,175,865) $ 7,263,271
Shares issued in
private
placements (note
11(b)(i)) 1,466,312 - - - - 1,466,312
Share issue costs (30,777) - - - - (30,777)
Common shares
issued for debt
(note 11(b)(ii)) 935,852 - - - - 935,852
Net loss and other
comprehensive
loss for the
period - - - (1,172,724) (1,019,174) (2,191,898)
------------------- ----------- ----------- -------- ----------- ----------- ----------
Balance, June 30,
2016 $ 36,331,577 $ 5,809,109 $ 766,000 $ 731,113 $(36,195,039) $ 7,442,760
------------------- ----------- ----------- -------- ----------- ----------- ----------
Balance, December
31, 2016 $ 36,331,577 $ 6,575,109 $ - $ 450,948 $(36,789,163) $ 6,568,471
Shares issued in
private placement
(note 11(b)(iii)) 2,446,299 - - - - 2,446,299
Share issue costs (134,854) - - - - (134,854)
Stock-based
compensation
(note 11(d)(i)) - 301,087 - - - 301,087
Net loss and other
comprehensive
income for the
period - - - 113,470 (1,196,110) (1,082,640)
------------------- ----------- ----------- -------- ----------- ----------- ----------
Balance, June 30,
2017 $ 38,643,022 $ 6,876,196 $ - $ 564,418 $(37,985,273) $ 8,098,363
------------------- ----------- ----------- -------- ----------- ----------- ----------
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, 2017 (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 material uncertainties related to events or conditions that may cast significant 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 Omagh Minerals Limited ("Omagh") and Flintridge Resources Limited ("Flintridge") who are engaged in the acquisition, exploration and development of gold properties, mainly in Omagh, Northern Ireland. The Omagh mine has an open pit mine, which was in production and is reported as property, plant and equipment and an underground mine which is in the development stage and reported as exploration and evaluation assets. The production at the open pit mine was suspended in 2013.
The going concern assumption is dependent upon the ability of the Company to obtain the following:
a. Securing sufficient financing to fund ongoing operational activity and the development of
the underground mine.
b. Obtaining consent for an underground mine which is currently subject to a judicial review
process.
Should the Company be unsuccessful in securing the above, there would be significant uncertainty over the Company's ability to continue as a going concern. The Company is currently in discussions with a number of potential financiers.
As at June 30, 2017, the Company had a deficit of $37,985,273 (December 31, 2016 - $36,789,163). Management is confident that it will be able to secure the required financing to enable the Company to continue as a going concern. However, this is subject to a number of factors including market conditions. Refer to note 11(b)(iii) for private placement completed during the six months ended June 30, 2017.
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. 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.
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 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.
3. Significant Accounting Policies
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. 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 IFRSs issued and outstanding as of August 21, 2017 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, 2016. Any subsequent changes to IFRS that are given effect in the Company's annual consolidated financial statements for the year ending December 31, 2017 could result in restatement of these unaudited condensed interim consolidated financial statements.
Recent accounting pronouncements
(i) IFRS 9 - Financial Instruments ("IFRS 9") was issued by the IASB in October 2010 and will replace IAS 39 - Financial Instruments: Recognition and Measurement ("IAS 39"). IFRS 9 uses an incurred loss approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the expected loss approach in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. In July 2014, the IASB issued the final version of IFRS 9. The final amendments made in the new version include guidance for the classification and measurement of financial assets and a third measurement category for financial assets, fair value through other comprehensive income. The standard also contains a new expected loss impairment model for debt instruments measured at amortized cost or fair value through other comprehensive income, lease receivables, contract assets and certain written loan commitments and financial guarantee contracts. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. IFRS 9 will be effective for accounting periods beginning January 1, 2018. The Company is currently assessing the impact of this pronouncement.
(ii) In May 2014, the IASB issued IFRS 15 - Revenue from Contracts with Customers ("IFRS 15") to replace IAS 18 - Revenue and IAS 11 - Construction Contracts and the related interpretations on revenue recognition. The new revenue standard introduces a single, principles based, five-step model for the recognition of revenue when control of a good or service is transferred to the customer. The five steps are identify the contract(s) with the customer, identify the performance obligations in the contract, determine transaction price, allocate the transaction price and recognize revenue when the performance obligation is satisfied. IFRS 15 also requires enhanced disclosures about revenue to help investors better understand the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers and improves the comparability of revenue from contracts with customers. IFRS 15 will be effective for annual periods beginning on or after January 1, 2018, with early adoption permitted.
(iii) IFRS 16 - Leases ("IFRS 16") was issued on January 13, 2016 to require lessees to recognize assets and liabilities for most leases. For lessors, there is little change to the existing accounting in IAS 17 - Leases.
The IASB issued its standard as part of a joint project with the Financial Accounting Standards Board ("FASB"). The FASB has not yet issued its new standard, but it is also expected to require lessees to recognize most leases on their statement of financial position.
The new standard will be effective for annual periods beginning on or after January 1, 2019. Early application is permitted, provided the new revenue standard, IFRS 15, has been applied, or is applied at the same date as IFRS 16.
4. Accounts Receivable and Prepaid Expenses
As at As at
June 30, December 31,
2017 2016
----------------------------------------------- -------- ------------
Sales tax receivable - Canada $ 1,814 $ 1,480
Valued added tax receivable - Northern Ireland 121,560 76,536
Accounts receivable 2,426 13,206
Prepaid expenses 22,243 15,510
----------------------------------------------- -------- ------------
$ 148,043 $ 106,732
----------------------------------------------- -------- ------------
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,
2017 2016
-------------------------- -------- ------------
Less than 3 months $ 123,374 $ 88,838
More than 12 months 2,426 2,384
-------------------------- -------- ------------
Total accounts receivable $ 125,800 $ 91,222
-------------------------- -------- ------------
5. Inventories
As at As at
June 30, December 31,
2017 2016
------------------------ -------- ------------
Concentrate inventories $ 10,960 $ 10,767
Finished goods 4,047 13,085
------------------------ -------- ------------
$ 15,007 $ 23,852
------------------------ -------- ------------
Refer to note 13 for inventory movement.
6. Property, Plant and Equipment
Freehold Plant Mine
land and and Motor Office development
Cost buildings machinery vehicles equipment costs Total
----------- ---------- ---------- -------- --------- ----------- -----------
Balance,
December
31, 2015 $ 2,755,995 $ 5,833,381 $ 136,644 $ 125,679 $ 17,730,606 $ 26,582,305
Additions 46,407 111,298 32,762 - 634,010 824,477
Disposals - - (34,075) - - (34,075)
Foreign
exchange
adjustment (519,002) (1,093,260) (25,733) (23,668) (3,580,988) (5,242,651)
----------- ---------- ---------- -------- --------- ----------- -----------
Balance,
December
31, 2016 2,283,400 4,851,419 109,598 102,011 14,783,628 22,130,056
Additions 2,079 265,919 4,300 - 99,248 371,546
Foreign
exchange
adjustment 41,081 86,777 1,972 1,835 265,972 397,637
----------- ---------- ---------- -------- --------- ----------- -----------
Balance,
June 30,
2017 $ 2,326,560 $ 5,204,115 $ 115,870 $ 103,846 $ 15,148,848 $ 22,899,239
----------- ---------- ---------- -------- --------- ----------- -----------
Freehold Plant Mine
land and and Motor Office development
Accumulated
depreciation buildings machinery vehicles equipment costs Total
------------- ---------- ---------- -------- --------- ----------- -----------
Balance,
December 31,
2015 $ 2,259,312 $ 5,033,767 $ 92,354 $ 100,394 $ 10,409,576 $ 17,895,403
Depreciation 18,046 137,341 10,195 3,154 - 168,736
Disposals - - (5,866) - - (5,866)
Foreign
exchange
adjustment (426,872) (953,435) (18,441) (19,151) (1,960,309) (3,378,208)
------------- ---------- ---------- -------- --------- ----------- -----------
Balance,
December 31,
2016 1,850,486 4,217,673 78,242 84,397 8,449,267 14,680,065
Depreciation 7,230 78,275 4,121 1,316 - 90,942
Foreign
exchange
adjustment 33,316 75,648 1,421 1,523 152,010 263,918
------------- ---------- ---------- -------- --------- ----------- -----------
Balance, June
30, 2017 $ 1,891,032 $ 4,371,596 $ 83,784 $ 87,236 $ 8,601,277 $ 15,034,925
------------- ---------- ---------- -------- --------- ----------- -----------
Freehold Plant Mine
land and and Motor Office development
Carrying value buildings machinery vehicles equipment costs Total
-------------------- --------- --------- -------- --------- ----------- ----------
Balance, December
31, 2016 $ 432,914 $ 633,746 $ 31,356 $ 17,614 $ 6,334,361 $ 7,449,991
-------------------- --------- --------- -------- --------- ----------- ----------
Balance, June 30,
2017 $ 435,528 $ 832,519 $ 32,086 $ 16,610 $ 6,547,571 $ 7,864,314
-------------------- --------- --------- -------- --------- ----------- ----------
7. Exploration and Evaluation Assets
Exploration and evaluation assets are expenditures for the underground mining operations in Omagh. The proposed underground mine is dependent on the ability of the Company to obtain the necessary planning permission. On June 11, 2015, the Company announced that it had obtain planning consent for an underground gold mine at the Omagh site. In February 2017, the planning permission was subject to a judicial review and the Company is awaiting judgement. The consent includes operating and environmental conditions. On March 13, 2017, the Company announced that underground development had commenced on the Omagh mine. On April 24, 2017, the Company announced that the underground development has been put on hold and on May 15, 2017, the Company announced that the underground development would continue.
Exploration
and
evaluation
Cost assets
---------------------------- -----------
Balance, December 31, 2015 $ 2,371,328
Additions 367,893
Foreign exchange adjustment (444,967)
---------------------------- -----------
Balance, December 31, 2016 2,294,254
Additions 305,963
Foreign exchange adjustment 40,194
---------------------------- -----------
Balance, June 30, 2017 $ 2,640,411
---------------------------- -----------
Exploration
and
evaluation
Carrying value assets
--------------------------- -----------
Balance, December 31, 2016 $ 2,294,254
--------------------------- -----------
Balance, June 30, 2017 $ 2,640,411
--------------------------- -----------
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, 2017 based on a risk-free discount rate of 1% (December 31, 2016 - 1%) and an inflation rate of 1.50% (December 31, 2016 - 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, 2017, the estimated fair value of the liability is $543,135 (December 31, 2016 - $528,305). Changes in the provision during the six months ended June 30, 2017 are as follows:
As at As at
June 30, December 31,
2017 2016
----------------------------------------------- -------- ------------
Decommissioning liability, beginning of period $ 528,305 $ 637,988
Accretion 5,307 11,345
Foreign exchange 9,523 (121,028)
----------------------------------------------- -------- ------------
Decommissioning liability, end of period $ 543,135 $ 528,305
----------------------------------------------- -------- ------------
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, 2016 - GBP 300,000), of which GBP 300,000 was funded as of June 30, 2017 (GBP 300,000 was funded as of December 31, 2016) and reported as long-term deposit of $505,860 (December 31, 2016 - $496,920).
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, amounts payable for financing activities and professional fees activities.
As at As at
June 30, December 31,
2017 2016
--------------------------------------------- ---------- ------------
Accounts payable $ 543,314 $ 336,121
Accrued liabilities 491,228 557,449
--------------------------------------------- ---------- ------------
Total accounts payable and other liabilities $ 1,034,542 $ 893,570
--------------------------------------------- ---------- ------------
The following is an aged analysis of the accounts payable and other liabilities:
As at As at
June 30, December 31,
2017 2016
--------------------------------------------- ---------- ------------
Less than 3 months $ 576,902 $ 365,448
3 to 12 months 97,037 154,456
12 to 24 months 32,968 54,992
More than 24 months 327,635 318,674
--------------------------------------------- ---------- ------------
Total accounts payable and other liabilities $ 1,034,542 $ 893,570
--------------------------------------------- ---------- ------------
10. Financing Facility
Amounts payable on the long-term debt are as follow:
As at As at
June 30, December 31,
2017 2016
---------------------------------------- -------- ------------
Financing facility, beginning of period $ 25,265 $ 38,069
Less current portion (5,595) (4,956)
Repayment of financing facility (1,842) (4,007)
Foreign exchange adjustment 4,956 (3,841)
---------------------------------------- -------- ------------
Financing facility - long term portion $ 22,784 $ 25,265
---------------------------------------- -------- ------------
In June 2015, the Company obtained financing in the amount of GBP 19,900 for the purchase of a vehicle. The financing is for three years at interest of 6.79% per annum with monthly principal and interest payments of GBP 377 together with a final payment in June 2018 of GBP 9,383. The financing was secured on the vehicle.
11. Share Capital and Reserves a) Authorized share capital
At June 30, 2017, 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, 2017, the issued share capital amounted to $38,643,022. The change in issued share capital for the periods presented is as follows:
Number of
common
shares Amount
----------------------------------------- ----------- -----------
Balance, December 31, 2015 107,297,154 $ 33,960,190
Shares issued in private placements (i) 18,619,841 1,466,312
Share issue costs - (30,777)
Common shares issued for debt (ii) 11,883,835 935,852
------------------------------------------ ----------- -----------
Balance, June 30, 2016 137,800,830 $ 36,331,577
------------------------------------------ ----------- -----------
Balance, December 31, 2016 137,800,830 $ 36,331,577
Shares issued in private placement (iii) 33,093,257 2,446,299
Share issue costs - (134,854)
------------------------------------------ ----------- -----------
Balance, June 30, 2017 170,894,087 $ 38,643,022
------------------------------------------ ----------- -----------
(i) On June 9, 2016, the Company closed a private placement of 18,619,841 common shares at $0.07875 per common share for gross proceeds of $1,466,312.
The majority of the placement was taken up by Mr. Ross Beaty, who acquired 12,825,397 common shares.
(ii) On June 10, 2016, the Company issued 11,883,835 common shares as settlement of due to related parties of $935,852. Due to related parties consisted of an amount owing to Roland Phelps (President and Chief Executive Officer ("CEO").
(iii) On February 27, 2017, the Company completed the first part of a private placement. It consisted of 27,371,035 common shares of no par value. United Kingdom placees have subscribed at a price of GPB 0.045 per common share. Canadian placees have subscribed at a price of $0.0725 per common share. Receipts attached to the first part of the placement total $2,021,501.
On March 2, 2017, the Company completed the second part of a private placement. It consisted of 5,722,222 common shares of no par value for receipt of $424,798. United Kingdom placees have subscribed at a price of GPB 0.045 per common share. The hold period will expire for the second closing of the placing on July 3, 2017.
Melquart Ltd, ("Melquart") a UK based investment institution, subscribed for a total of 22,222,222 common shares and Melquart's staked increased to 13% of the Company's issued common shares.
Ross Beaty subscribed for 3,326,170 common shares and after closing of the private placement Ross Beaty owns 32,151,567 common shares of the Company or approximately 18.8% of the outstanding common shares.
The net proceeds to be raised by the private placement are intended to be used for working capital purposes and to commence development of an underground mine on the Omagh property.
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, 2015 30,966,000 $ 0.17
Expired (10,330,000) 0.17
---------------------------------------------- ----------- --------
Balance, June 30, 2016 20,636,000 $ 0.16
---------------------------------------------- ----------- --------
Balance, December 31, 2016 and June 30, 2017 636,000 $ 0.07
---------------------------------------------- ----------- --------
The following table reflects the actual warrants issued and outstanding as of June 30, 2017:
Fair value
Grant date June 30,
Number fair value Exercise 2017
Expiry date of warrants ($) price ($)
------------------ ----------- ---------- -------- --- ----------
February 16, 2018 636,000 32,000 0.045 (1) 18,000
------------------- ----------- ---------- -------- --- ----------
(1) Exercise price is in GBP. As a result of the exercise price of the warrants being denominated in a currency other than the functional currency, the warrants are considered a derivative financial liability. The warrants are revalued at each period end with any gain or loss in the fair value being record in the unaudited condensed interim consolidated statements of loss as an unrealized gain or loss on fair value of derivative financial liability.
On June 30, 2017, the fair value of the warrants, denominated in a currency other than the functional currency, was estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield of 0%; expected volatility of 109%; risk free interest rate of 1.10%; and an expected life of 0.63 years. As a result, the fair value of the warrants was calculated to be $18,000 and the Company recorded an unrealized gain on fair value of derivative financial liability for the three and six months ended June 30, 2017 of $28,000 and $6,000, respectively (three and six months ended June 30, 2016 - unrealized gain of $1,000 and $80,000, respectively).
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, 2015 4,440,000 $ 0.17
Expired (50,000) 0.50
---------------------------- --------- --------
Balance, June 30, 2016 4,390,000 $ 0.17
---------------------------- --------- --------
Balance, December 31, 2016 3,700,000 $ 0.11
Granted (i) 4,900,000 0.14
---------------------------- --------- --------
Balance, June 30, 2017 8,600,000 $ 0.12
---------------------------- --------- --------
(i) On March 25, 2017, 4,900,000 stock options were granted to directors, officers, consultants and key employees of the Company to purchase common shares at a price of $0.135 per share until March 25, 2022. The options will vest as to one third on March 25 2017 and one third on each of the following two anniversaries. The fair value attributed to these options was $645,820 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, 2017, included in stock-based compensation is $80,506 and $301,087, respectively (three and six months ended June 30, 2016 - $nil) related to the vested portion of these options.
The fair value of the options was estimated using the Black-Scholes option pricing model with the following assumptions: dividend yield - 0%; volatility - 201%; risk-free interest rate - 1.12% and an expected life of 5 years.
The following table reflects the actual stock options issued and outstanding as of June 30, 2017:
Weighted average Number of
remaining Number of options Number of
Exercise contractual options vested options
Expiry date price ($) life (years) outstanding (exercisable) unvested
--------------- --------- ---------------- ----------- ------------- ---------
June 1, 2020 0.105 2.92 3,550,000 3,550,000 -
June 12, 2020 0.105 2.96 150,000 150,000 -
March 25, 2022 0.135 4.74 4,900,000 1,633,333 3,266,667
---------------- --------- ---------------- ----------- ------------- ---------
0.122 3.96 8,600,000 5,333,333 3,266,667
--------------- --------- ---------------- ----------- ------------- ---------
12. Net Loss per Common Share
The calculation of basic and diluted loss per share for the three and six months ended June 30, 2017 was based on the loss attributable to common shareholders of $511,876 and $1,196,110, respectively (three and six months ended June 30, 2016 - $645,829 and $1,019,174, respectively) and the weighted average number of common shares outstanding of 170,894,087 and 160,616,924, respectively (three and six months ended June 30, 2016 - 114,263,285 and 110,765,807, respectively) for basic and diluted loss per share. Diluted loss did not include the effect of 636,000 warrants (three and six months ended June 30, 2016 - 20,636,000) and 8,600,000 options (three and six months ended June 30, 2016 - 4,390,000) for the three and six months ended June 30, 2017, as they are anti-dilutive.
13. Cost of Sales
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
----------------------- --------- ------- -------- --------
Production wages $ 14,946 $ 36,950 $ 17,867 $ 97,430
Oil and fuel 25,307 15,081 45,529 33,350
Repairs and servicing 35,689 10,952 51,544 26,350
Equipment hire 18,016 - 21,231 -
Environment monitoring 7,711 6,673 14,679 13,740
Royalties 4,301 4,621 8,402 9,529
Other costs (2,724) 14,715 5,770 16,174
----------------------- --------- ------- -------- --------
Production costs 103,246 88,992 165,022 196,573
Inventory movement 8,359 (420) 9,999 13,530
----------------------- --------- ------- -------- --------
Cost of sales $ 111,605 $ 88,572 $ 175,021 $ 210,103
----------------------- --------- ------- -------- --------
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 2017 2016 2017 2016
-------------------------------- ----- -------- ---------- -------- -------
Interest on related party loans (i) $ 14,691 $ 17,137 $ 28,284 $ 35,250
--------------------------------- ------ -------- ---------- -------- -------
(i) G&F Phelps Limited, a company controlled by a director of the Company, had amalgamated loans to the Company of $2,223,009 (GBP 1,318,354) (December 31, 2016 - $2,183,722 - GBP 1,318,354) included with 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. Interest accrued on related party loans is included with due to related parties. As at June 30, 2017, the amount of interest accrued is $352,483 (GBP 209,040) (December 31, 2016 - $318,375 - GBP 192,209).
(ii) See note 11(b)(i)(ii)(iii).
(b) Remuneration of key management of the Company was as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
-------------------------- --------- -------- -------- -------
Salaries and benefits (1) $ 114,051 $ 118,574 $ 219,316 $240,060
Stock-based compensation 19,716 - 73,736 -
-------------------------- --------- -------- -------- -------
$ 133,767 $ 118,574 $ 293,052 $240,060
-------------------------- --------- -------- -------- -------
(1) Salaries and benefits include director fees. As at June 30, 2017, due to directors for fees amounted to $123,750 (December 31, 2016 - $110,250) and due to key management, mainly for salaries and benefits accrued amounted to $433,713 (GBP 257,213) (December 31, 2016 - $271,840 - GBP 164,115), and is included with due to related parties.
(c) As of June 30, 2017, Ross Beaty owns 32,151,567 common shares of the Company or approximately 18.81% of the outstanding common shares. Roland Phelps, Chief Executive Officer and director, owns, directly and indirectly, 33,356,750 common shares of the Company or approximately 19.52% of the outstanding common shares of the Company. Melquart owns, directly and indirectly, 22,222,222 common shares of the Company or approximately 13.00% of the outstanding common shares of the Company. The remaining 48.67% 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, 2017 United Kingdom Canada Total ------------------- -------------- ---------- ---------- Current assets $ 290,967 $ 1,553,822 $ 1,844,789 Non-current assets 10,950,208 60,377 11,010,585 ------------------- -------------- ---------- ---------- Revenues $ 19,341 $ - $ 19,341 ------------------- -------------- ---------- ---------- December 31, 2016 United Kingdom Canada Total ------------------- -------------- -------- ---------- Current assets $ 283,773 $ 403,816 $ 687,589 Non-current assets 10,180,747 60,418 10,241,165 ------------------- -------------- -------- ---------- 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 in the amount of $513,094 (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. The Company believes this claim is without merit. An appeal has been lodged and the Company's subsidiary Omagh intends to vigorously defend itself against this claim. The hearing started at the beginning of March 2017 but a further two days hearing is scheduled in January 2018. No provision has been made for the claim in the unaudited condensed interim consolidated financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEIFLDFWSEFA
(END) Dow Jones Newswires
August 24, 2017 02:00 ET (06:00 GMT)
1 Year Galantas Gold Chart |
1 Month Galantas Gold Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
