Galantas Gold working to close Andacollo Oro deal

Executive Summary

• Galantas Gold Corp. provides a material update on its previously announced acquisition of Sol de Oro Mining Ltd., which owns the Andacollo Oro gold project in Chile, noting that closing is expected in Q2 2026 and remains subject to TSX-V and minority shareholder approvals.
• The company has reallocated the net proceeds from its December 31, 2025 financing, shifting approximately $8.4 million from the Indiana project to the Andacollo project to fund the acquisition and exploration, while retaining $3.9 million for the Indiana project.
• A significant operational milestone was achieved as the Chilean Environmental Evaluation Service (SEA) confirmed that the restart of the Andacollo project does not require a new environmental impact assessment, significantly reducing permitting risk and timeline.

Key Details

• Transaction Structure: Acquisition of all issued and outstanding shares of Sol de Oro Mining Ltd. from Robert Sedgemore. Sol owns OXI SpA, which owns Dragones SpA, the owner of the Andacollo Oro gold project.
• Closing Conditions: Approval of the TSX Venture Exchange, minority shareholder approval, and satisfaction of customary closing conditions. Expected completion in Q2 2026.
• Trading Status: Trading in Galantas common shares is currently halted on the TSX-V under Policy 5.3 pending the TSX-V's continuing review.
• Financing Reallocation (Dec 31, 2025 Financing):
  • Original gross proceeds: $15,525,000.
  • Revised Use of Proceeds:
    • ~$8.4 million allocated to Andacollo project (closing payment to Sedgemore, deferred payments to former Dragones shareholders, and exploration).
    • ~$3.9 million allocated to Indiana project (exploration, drilling, PEA preparation, option/lease payments).
    • ~$100,000 allocated to Gairloch project.
    • Remainder for general working capital and corporate purposes.
• Escrow Requirements: TSX-V imposed a three-year escrow on securities issued in the December financing:
  • Mario Stifano (CEO): 400,000 units.
  • George Duguay (Corp Sec): 500,000 units.
  • Melquart Ltd.: 10,000,000 units.
  • Ocean Partners U.K.: 35,937,500 units and 7,812,500 common shares.
• Environmental Permitting: Dragones received formal written confirmation from the Servicio de Evaluacion Ambiental (SEA) that the proposed restart and extension of mine life at Andacollo does not require re-entry into Chile's environmental impact assessment system. The existing approval (Resolucion de Calificacion Ambiental No. 151/2014) remains valid.
• Project Status: Andacollo is a past-producing gold open-pit, heap-leach operation placed on care and maintenance in 2015. It has existing infrastructure, proven metallurgy, and historical mineral resources.
• Next Steps: Management aims to complete an updated NI 43-101 technical report by April 2026 and finalize remaining technical studies to support a restart.

Notable Quotes

• Mario Stifano, CEO: "This is a major milestone for Galantas and the acquisition of the Andacollo project as it confirms the project can advance to restart without the need for a new environmental permitting process. The confirmation from SEA that the existing environmental approval remains valid significantly reduces both the timeline to restart and permitting risk. We are now focused on completing an updated NI [National Instrument] 43-101 technical report by April, 2026, and finalizing the remaining technical studies required to support a restart."