Galantas Gold Corp (LON: GAL) have seen their shares sink, this is due to the suspension of operations at their Omagh site.

In a statement this morning, Galantas said operations were suspended due to insufficient supervision arrangements and added that it will seek strategic alternatives due to “economic impingement on the company’s operations.”

As all blasting operations must be supervised by Police Service of Northern Ireland, there was a shortage of resources which halted this operation

Presently police arrangements are not sufficient for the desired level of operations which has caused disruptions to Galantas.

“The current arrangements are not sufficient to allow for the expansion of mine operations as envisaged by the company’s existing mine plan and until changes are agreed, the present inefficiencies caused by those arrangements form an increasing financial burden, which has proved a significant drain on the financial resources of the company,” Galantas Gold explained.

The company said, as a result, it has started consultations to reduce employee numbers at the Omagh mine and save costs. Galantas, however, plans to continue with some some operations at the gold mine.

The fact that Galantas have not seized all operations at the Omagh mine is a positive, as this does show plans to continue operations in the longer term, giving shareholders hope.

Additionally, the benefit of not seizing operations will come as a relief to employees at the Irish mine, where their jobs are secure for the immediate short term.

Since this announcement, Galantas have looked to seek alternatives such as reviewing operations, finding a joint venture partner and alternative financing structures due to the “economic impingement” on its operations.

In order to implement this changes, strategies will have to be conjured in order to raise new capital and funds.

Shares of Galantas Gold are trading at 2.08p per share, seeing a fall of 42.22%. 29/10/19 12:07BST.

In the mining sector, Centamin (LON: CEY) have experienced a output decline, Serabi Gold Plc (LON: SRB) have shown strong production figures in their third quarter, Antofagasta (LON: ANTO) have faced tough political conditions and Europa Metals (LON: EUZ) have gained a boost in their Spanish operations.