Galantas Gold, the Canadian group that wants to develop a controversial gold mine in Tyrone, has reported net losses of more than Can$2 million (€1.28 million) for 2017.
Latest end of year results for the Toronto and AIM-listed gold developer show it had a cash balance of Can$779,758 on its books by the end of December last year and was also running a working capital deficit of more than Can$3.4 million.
The company is currently awaiting the outcome of a judicial review in Northern Ireland regarding a previous decision by authorities in the North to grant it planning permission for an underground mine in Tyrone.
According to Galantas, the underground mine, is now in “active development” and will be the first underground mine of any scale on the island.
The proposed mine has been met with fierce opposition by community groups in Tyrone and environmental campaigners in the North.
But Galantas outlined in its latest financial statements that its strategy is to “expand the continuing development of the underground mine and look for further expansion of gold resources on the property, which has many undrilled targets”.
Earlier this month one of its operating subsidiaries, Flintridge Resources, secured a significant funding boost for its gold development plans of $1.6 million (€1.3 million) from Ocean Partners and also expanded a loan facility to more than $3 million.
In its end of year report Galantas said that its phased development approach would allow for “rapid expansion of production as additional capital becomes available” and the company’s chief executive and president has also highlighted that it will be in a position to access one of its key areas shortly.
Roland Phelps stated: "I look forward to seeing the improved advanced rate expected with the interim tunnelling rig. At anticipated advance rates, we expect to reach the Kearney vein system, after approximately 160m of further development, in around 10 weeks."
