Galantas Gold Announces Definitive Agreement to Acquire the Andacollo Oro Gold Project, Chile

Executive Summary

• Galantas Gold Corp. entered a Share Purchase Agreement to acquire 100% of the Andacollo Oro Gold Project in Chile for a total cash consideration of US$32 million, plus issuance of ~19.9% of its common shares to the controlling shareholder of the seller.
• The transaction is classified as a “Fundamental Acquisition” under TSX‑Venture Exchange policies and has received full board approval; it remains subject to TSXV, minority shareholder, and other regulatory approvals.
• The Project is a past‑producing open‑pit heap‑leach gold operation with historical measured & indicated resources of 2.02 Moz Au (130 Mt @ 0.48 g/t) and inferred resources of 5.06 Moz Au (358 Mt @ 0.45 g/t), plus historic reserves of 0.83 Moz Au, providing a substantial platform for accelerated development and exploration upside.

Key Details

• Transaction Structure – Acquisition of Sol de Oro Mining Ltd., which owns OXI and Dragones (the Project owner).
• Cash Consideration: US$32.0 million payable in staged installments:
• Closing: US$4.5 M (US$3.0 M debt assumption + US$1.5 M to Sol shareholder Robert Sedgemore)
• 31‑Dec‑2026: US$3.5 M
• 31‑Dec‑2027: US$4.0 M
• 31‑Dec‑2028: US$6.0 M
• 31‑Dec‑2029: US$14.0 M
• Equity Consideration: 91,313,890 Galantas common shares (≈19.9% of post‑closing equity) issued to Luis Catril, controlling shareholder of Dragones, at a deemed market price; subject to TSXV and shareholder approvals and resale/escrow restrictions.
• Funding Plan: Cash portion expected to be financed through future financings and/or working capital.
• Related‑Party Disclosure: Robert Sedgemore (executive officer) is a non‑arm’s‑length party; the transaction qualifies as a related‑party transaction under MI 61‑101 and AIM Rules, deemed fair by independent directors after Nominated Adviser consultation.
• Project Overview:
• Location: Coquimbo Region, Chile – ~55 km SE of La Serena, elevation 1,100 m.
• Infrastructure: Existing open‑pit, heap‑leach pads (3), processing plant (200,000 oz/yr nameplate), water rights, permits, road access, skilled workforce.
• Historical Production: 20,000 tpd operation, 1.12 Moz Au produced (1998‑2018), peak ~135,000 oz Au/year.
• Historical Mineral Resources (NI 43‑101, Aug 2021):
• Measured + Indicated: 130 Mt @ 0.48 g/t Au → 2.02 Moz Au
• Inferred: 358 Mt @ 0.45 g/t Au → 5.06 Moz Au (total 7.08 Moz Au)
• Historical Mineral Reserves (Probable): 40.74 Mt @ 0.64 g/t Au → 0.83 Moz Au.
• Exploration Potential:
• Angle‑drilling to target higher‑grade feeder structures.
• Possible gold‑copper porphyry extension from adjacent Teck CDA Mine (historical intercepts up to 30 m @ 0.53 % Cu).
• Chalcocite‑enriched copper blanket and numerous undiscovered gold‑copper occurrences.
• Silver Stream Obligations: Existing streams to K2 Resources (33.4 % of payable silver until 333,334 oz delivered) and ExGen Resources (66.6 % until 666,667 oz delivered), thereafter reduced percentages.
• Regulatory Conditions to Closing: TSXV Fundamental Acquisition approval, minority shareholder consent under MI 61‑101, all other customary closing conditions.
• Qualified Person: Mr. Gavin Berkenheger reviewed and approved scientific/technical disclosures per NI 43‑101.

Notable Quotes

“This transaction represents a clear step‑change in the scale and profile of Galantas… adding a large‑scale, past‑producing gold asset with existing infrastructure… while the staged consideration structure reflects our commitment to capital discipline and risk management.” – Mario Stifano, CEO, Galantas Gold Corp.