Palamina Confirms Closing of Spin-Out Arrangement
Palamina completes its spin-out to become a standalone silver-copper developer focused on its assets in Peru.
Palamina Corp. officially closed the previously announced spin-out of Colt Silver Corp. on September 29, 2026. Under the terms of the transaction, Palamina shareholders received 0.25 Colt Silver share for every Palamina common share held. Palamina retained a 9.1% equity stake in Colt Silver, representing 4,577,766 shares. As part of the restructuring, Palamina common shares were delisted from the TSX Venture Exchange and exchanged on a one-for-one basis for new Palamina shares.
Colt Silver completed concurrent financings totaling $3,050,000 via the conversion of secured convertible debentures ($600,000) and subscription receipts ($2,450,000). The company’s post-closing capitalization stands at 50,355,421 shares, with 46.3% held by Palamina shareholders, 9.1% by Palamina, and 44.6% by financing participants.
An NI 43-101 Technical Report for the Galena Ag-Cu-Mn Project was filed, establishing it as the qualifying property for Colt Silver's TSXV listing application. Additionally, an early warning report indicates Andrew Thomson acquired approximately 9.9% of Colt Silver shares and 923,750 warrants upon closing.
The spin-out closed as expected after receiving shareholder and court approvals in late September 2026, with transaction terms, exchange ratios, and financing mechanics disclosed months in advance. The $3.05 million in converted financing provides Colt Silver with immediate working capital to execute its inaugural 2,500-meter drilling program at the Galena project, scheduled to begin in October 2026.
Dilution and share distribution mechanics were already priced into the stock, and the market impact is incremental, confirming the successful separation of the silver-copper assets (Colt Silver) from the gold portfolio (Palamina). No unexpected valuation uplift or strategic partnership was announced alongside the closing. The primary material effect is the operational independence of Colt Silver and the commencement of its first drilling campaign.
Palamina Corp. is a mineral exploration company focused on gold, silver, and copper projects in Peru. Following its spin-out, Palamina retains six gold projects in the Puno Orogenic Gold Belt (POGB), including the permitted Usicayos project.
Colt Silver Corp. holds seven silver-copper projects in Peru, with its flagship Galena Ag-Cu-Mn project located in the Santa Lucia District. Galena sits at the intersection of a northeast-trending carbonate replacement deposit (CRD) belt and a southeast-trending porphyry copper belt. It has never been drilled.
Management has a proven track record, previously defining 77 million ounces of silver at the El Rayo Silver project, which was sold to Agnico Eagle in 2015.