Galantas Announces Amendment to a Dragones Share Purchase Agreement

Galantas Gold Corporation and its subsidiary OXI have amended the share purchase agreement with former Dragones shareholder Luis Catril regarding the Andacollo Gold Project acquisition. The amendment accelerates the final cash payment deadline from December 31, 2029, to December 31, 2028.

An immediate payment of US$5.0 million was made on July 24, 2026, with the remaining US$9.0 million of that tranche due by April 25, 2027. Galantas has assumed the role of guarantor and joint and several co-debtor for the remaining cash obligations. Mr. Catril has acknowledged full payment of the variable share consideration, comprising 91,313,890 shares, releasing the company from related disputes.

Total cash consideration under the Dragones Agreements is US$31 million. Following the initial payment, US$22.0 million remains payable, and US$9.0 million has been paid alongside the equity issuance. The transaction is classified as a related party transaction under Multilateral Instrument 61-101 and TSXV Policy 5.9, relying on exemptions from formal valuation and minority shareholder approval.

Galantas Gold Corporation (GAL) has agreed to an amendment that materially accelerates near-term cash outflows, requiring an additional US$9.0 million by April 2027 compared to the original schedule. While the company raised US$100 million in May 2026, providing a substantial liquidity buffer, the accelerated payment schedule reduces financial flexibility and increases execution pressure ahead of the targeted Q1 2027 production restart.

Assuming guarantor status for the remaining obligations increases Galantas's direct financial exposure to the transaction. The release is in line with historical expectations of staged payments but represents a tightening of the timeline, which is a minor negative for cash flow management. No new strategic milestones or operational breakthroughs are introduced; the focus remains on financial restructuring of the acquisition.

Galantas Gold Corporation is a mining company focused on advancing gold and copper projects in Chile. Its flagship asset is the Andacollo Gold Project, a past-producing open-pit heap-leach operation located in the Coquimbo Region of Chile. The site generated approximately 1.12 million ounces of gold between 1998 and 2018.

An updated Mineral Resource Estimate released in February 2026 outlines 102.4 million tonnes at 0.45 g/t Au (Indicated, 1.47 moz Au) and 347.9 million tonnes at 0.41 g/t Au (Inferred, 4.54 moz Au). The company is pursuing a rapid restart of operations, targeting production in the first quarter of 2027. This effort is supported by the acquisition of a 20,000 TPD crushing plant and aggressive infill drilling.

Galantas also holds the Indiana Gold-Copper Project, which features an inferred resource of 4.93 million tonnes at 2.24 g/t Au and 1.31% Cu.