Galantas Report Financial Results for the Quarter Ended September 30, 2025

On November 28, 2025, Galantas Gold reported its financial results for the third quarter ending September 30, 2025. Key figures include: - A net loss of C$5.0 million, a significant increase from the C$0.74 million loss in the same period last year. - The large net loss was primarily driven by a C$2.89 million "loss on disposal of subsidiaries," related to the Omagh Project joint venture transaction. - A working capital deficit of C$2.56 million, which is a substantial improvement from the C$14.1 million deficit in the prior year, reflecting the debt cleared in the Omagh JV deal. - An alarmingly low cash balance of C$19,943 as of September 30, 2025, down from C$383,011 a year prior. - The company reported zero revenue, although it noted provisional concentrate sales revenues of US$566,000, which are offset against development assets as the mine is not in commercial production.

The Q3 2025 financial results are materially negative. The reported cash balance of less than C$20,000 as of September 30, 2025, underscores that the company was on the verge of insolvency. This report lays bare the dire financial state that forced the company's hand in its recent strategic transactions.

Reviewing the historical context is crucial. The company was in "serious financial difficulty" (as stated in its own June 9, 2025 release). This led to the Omagh project restructuring, where Galantas relinquished an 80% interest to its lender, Ocean Partners, to extinguish approximately US$14 million in debt. The C$2.89 million accounting loss on this disposal, which dominates the Q3 results, reflects the distressed nature of that transaction. It was a survival move, not a value-creating one.

While these financials are backward-looking and pre-date the transformative acquisition and financing announced in November, they are a stark confirmation of the extreme risks involved. The market was aware of the company's challenges, but seeing the cash position in black and white is jarring. The subsequent C$13.5 million financing announced on November 21 is a critical lifeline that completely changes the company's short-term outlook. However, these financials confirm that without that financing, the company would have ceased to operate. Therefore, the news itself is a material negative, highlighting past weakness, even if subsequent events have provided a path forward.

Galantas Gold Corporation was previously focused on developing its 100%-owned Omagh Gold Project in Northern Ireland. Due to significant debt and financial distress, the company completed a joint venture agreement in September 2025, ceding an 80% interest and operational control of the Omagh project to its primary lender, Ocean Partners, in exchange for clearing approximately US$14 million in loans.

Following this restructuring, Galantas has pivoted its strategy entirely. In November 2025, it announced the acquisition of RDL Mining Corp., which holds an option to acquire 100% of the Indiana Gold-Copper Project in Chile. The company is now effectively a newly recapitalized, early-stage exploration company focused on Chile. The Indiana project has a historical, non-compliant resource estimate and requires significant exploration work.