Galantas Announces Financial Results for the Quarter Ended March 31, 2022
TORONTO, May 31, 2022 (GLOBE NEWSWIRE) — Galantas Gold Corporation (the “Company”) (TSXV and AIM: Ticker GAL) (OTC: Ticker GALKF) is pleased to report its unaudited financial results for the quarter ended May 31, 2022. March 2022.
Highlights of the results for the first quarter of 2022, which are expressed in Canadian dollars, are summarized below:
|All figures are in Canadian dollars (CDN$)|
|Costs and expenses of operations||$||(46,639||)||$||(46,148||)|
|Loss before the under-mentioned||$||(46,639||)||$||(46,148||)|
|General administrative expenses||$||(1,171,170||)||$||(505,097||)|
|Foreign exchange gain (loss)||$||(67,472||)||$||(16,653||)|
|Net (Loss) for the quarter||$||(1,415,812||)||$||(639,963||)|
|Working capital deficit||$||(1,850,980||)||$||(8,532,943||)|
|Loss of cash from operating activities before changes in non-cash working capital||$||(577,604||)||$||(296,161||)|
|Cash at March 31, 2022||$||2,417,152||$||487 193|
Sales revenue for the quarter ended March 31, 2022 was $nil compared to revenue of $nil for the quarter ended March 31, 2021. Concentrate shipments commenced during the third quarter of 2019. preliminary concentrate sales totaled US$219,000 for the first quarter of 2022 compared to US$567,000 for the first quarter of 2021. Until the mine begins commercial production, net proceeds from concentrate sales are offset by development assets.
Net loss for the quarter ended March 31, 2022 was $1,415,812 (2021: $639,963) and cash used in operating activities before changes in non-cash working capital for the quarter ended March 31, 2022 amounted to $577,604 (2021: $296,161). .
The Company had a cash balance of $2,417,152 as of March 31, 2022 compared to $487,193 as of March 31, 2021. The working capital deficit as of March 31, 2022 was $1,850,980 compared to a working capital deficit working capital of $8,532,943 as at March 31, 2021.
Safety is a top priority for the Company and we continue to invest in safety 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.
Detailed results and the management report (MD&A) are available on www.sedar.com and www.galantas.com and the highlights of this release should be read in conjunction with the detailed results and MD&A. The management report provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.
The financial elements of this disclosure have been reviewed by Alan Buckley (Chief Financial Officer) and the production and authorization elements by Brendan Morris (COO), Qualified Persons as defined by NI. 43-101. The information is based on 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 revenue 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 deems appropriate in the circumstances. . Many factors could cause the actual results, performance or achievements of Galantas to differ materially from those expressed or implied by the forward-looking statements or strategy, including: the volatility of the price of gold; differences 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; the loss or availability of key employees; additional financing needs; uncertainties regarding planning and other permitting issues; and defective title to mining claims or property. These and other factors that could affect Galantas’ forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of Galantas’ Financial Statements and elsewhere in documents filed from time to time. with the Canadian provincial securities regulators and other regulatory authorities. These factors should be carefully considered and persons reading this press release should not place undue reliance on any forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise the forward-looking statements contained in this press release, except as required by law.
The information in this announcement is deemed to be inside information as set out in the retained EU law version of the Market Abuse Regulation (EU) No 596/2014 (the “UK MAR”) which forms part of the UK law under the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company’s obligations under section 17 of the UK MAR. As of the publication of this announcement, this privileged information is henceforth considered to be in the public domain.
Grant Thornton UK LLP (Nomadic)
Philip Secrett, Harrison Clarke, George Grainger, Samuel Littler:
Telephone: +44(0)20 7383 5100
Panmure Gordon & Co (AIM Broker & Corporate Adviser)
Hugh Rich, John Prior:
Telephone: +44(0)20 7886 2500