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02 Apr 2020 | 13:57

Galantas Gold to consolidate shares as processing slows

(Sharecast News) - Galantas Gold Corporation announced on Thursday that, as of market open on 9 April, it will complete the consolidation of its common shares on the basis of one postā€consolidated share for every 10 preā€consolidated shares held. The TSX-V and AIM-traded company said the consolidation was approved by shareholders at a special meeting on 18 February, and was still subject to the approval of the TSX Venture Exchange.

It said no fractional Shares would be issued under the consolidation, as fractional shares would be rounded to the nearest whole number.

The firm said it currently had 323,216,217 common shares issued and outstanding, and immediately following the consolidation, would have a maximum of 32,322,622 common shares issued and outstanding.

On the operational front, Galantas said it was continuing to meet safety and environmental standards, explaining that following UK government guidelines over the Covid-19 coronavirus pandemic, some non-essential staff were working from home, with others at the operation on furlough.

A small number of essential staff are continuing to provide safety, security, maintenance and fulfilling statutory obligations on site, the board said, while essential staff were operating under the health protocols advised by the authorities.

"Processing operations have temporarily ceased," the board confirmed.

"A potential restart has been provisionally scheduled in four to six weeks, subject to health advice.

"Concentrate production will be adversely affected, and the company will apply for potential UK government loan and grant support under the two schemes available."

Confirmation had been received from the Police Service of Northern Ireland (PSNI) around the satisfaction of certain secure storage and handling protocols required for an increase in blasting to a commercial level, the firm noted.

Some other issues, regarding financial matters, were being progressed, and Galantas said it was working to achieve an acceptable resolution in cooperation with PSNI at the earliest date.

Galantas also noted that a number of parties had expressed an interest in the company in terms of a potential purchase or joint venture.

Due diligence was being carried out on a remote basis at present, it said, but full assessments would inevitably be delayed during the current health emergency, as travel was restricted.

"The company has made significant progress in the resolution of blasting issues which were critical to the expansion of development and production and expects to make further progress in this regard in the coming quarter," said president and chief executive officer Roland Phelps.

At 1312 BST, shares in Galantas Gold were up 13.93% at 0.94p.
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