Galantas Gold talks RDL acquisition and financing

Executive Summary

• Galantas Gold Corp. provides an update on its acquisition of RDL Mining Corp. and a concurrent brokered private placement, noting that both transactions are expected to close in 2025, pending TSX Venture Exchange approval.
• Trading in Galantas common shares is currently halted under TSX-V Policy 5.3.
• The company clarified the financial terms for acquiring the Indiana gold/copper project in Chile, including a $15 million option payment schedule and lease terms based on production status.
• Galantas restated historical inferred mineral resources for the Indiana project (714,600 oz AuEq) but emphasized these are not current resources or reserves and require verification via a new NI 43-101 technical report.

Key Details

• Transaction Status: The acquisition of RDL Mining Corp. and the private placement are expected to complete in 2025. Remaining conditions include TSX-V approval.
• Trading Halt: Common shares are halted in accordance with TSX-V Policy 5.3.
• Financing Structure:
  • Previously announced private placement of units at $0.08 per unit.
  • Led by Canaccord Genuity Corp. and Haywood Securities Inc.
  • $10 million of gross proceeds are specifically allocated for the transaction, relying on the TSX-V "part and parcel" pricing exception.
  • Non-transaction funds raised may require price adjustment and closing at least two business days after trading resumes.
• Indiana Project Option Terms:
  • Galantas (via RDL) holds an option to acquire 100% interest in the Indiana project (Chile).
  • Total option payments: $15 million USD over five years.
  • Payment Schedule:
    • Q4 2025: $500,000 USD.
    • Year 1: $1 million USD.
    • Year 2: $1 million USD.
    • Year 3: $2 million USD.
    • Year 4: $2 million USD.
    • Year 5: $8.5 million USD.
• Lease Terms (Pre-Option Exercise):
  • If in production: 10% of net sales of minerals.
  • If not in production: No net sales payment; minimum annual payment of 25% of the option payment due for that year, capped at 50%.
  • Lease payments are for access only and do not count toward option payments.
• Historical Mineral Resources (Indiana Project):
  • Source: 2013 Technical Report for Minera Activa SpA.
  • Estimate: ~714,600 ounces of gold equivalent (AuEq).
  • Tonnes: ~4,546,300 tonnes.
  • Grade: 4.89 ppm AuEq.
  • Classification: Inferred only. Not verified by Galantas. Not treated as current resources/reserves.
• Exploration Activity:
  • Since 2013: ~1,500 meters of exploitation/exploration drifts excavated, mapped, and sampled.
  • 2020 Drilling: ~960 meters of core drilled.
• Qualified Person: Gavin Berkenheger (independent under NI 43-101).

Notable Quotes

• None explicitly quoted in the text, though the company states: "The company considers the historical estimate to be relevant as it provides an indication of the mineral potential of the Indiana project."