Galantas Gold Completes Transaction to Acquire Andacollo Gold
Rhea-AI Summary
Galantas Gold (OTCQX:GALKF) completed the acquisition of Sol de Oro Mining, gaining 100% of the Andacollo Gold Project in Chile. Total consideration is US$32.5 million including assumed debt and streaming obligations, paid in stages to 2029.
Galantas assumed silver streaming agreements, issued 91,313,890 shares to Luis Catril, and will have 829,500,590 shares outstanding. The CEO targets restarting operations and beginning gold production in 2027, alongside an aggressive drill program.
AI-generated analysis. Not financial advice.
Positive
- Acquisition delivers 100% ownership of Andacollo Gold Project in Chile
- Total cash consideration structured in staged payments through December 31, 2029
- US$32.5 million package includes defined obligations and US$3.0 million debt assumption
- Targeted restart of operations and planned gold production beginning in 2027
- Luis Catril becomes a significant shareholder with 91,313,890 new shares issued
Negative
- Total US$32.5 million consideration and US$3.0 million promissory note increase financial obligations
- Two silver streams require delivery of up to 1,000,001 ounces before lower ongoing rates apply
- Streaming agreements include minimum quarterly silver deliveries, backstopped by gold if shortfalls occur
- Interest of prime plus 3% applies to late payments under streaming agreements
- Issuance of 91,313,890 shares contributes to shareholder dilution, total shares 829,500,590
TORONTO, ON / ACCESS Newswire / June 23, 2026 / Galantas Gold Corporation ("Galantas" or the "Company") ) (TSX-V:GAL)(AIM:GAL) is pleased to announce that the Company has completed its previously announced acquisition (the "Transaction") of all of the issued and outstanding shares of Sol de Oro Mining Ltd. ("Sol") in exchange for a cash payment of US
Mario Stifano, CEO commented: "The acquisition of Andacollo Gold which hosts a substantial open pit gold resource, marks a transformative milestone for Galantas. We are already rapidly advancing the restart of operations and build out of our operational workforce in Chile with the clear objective of starting gold production in 2027. We plan to commence an aggressive drill program to specifically target higher-grade gold potential at El Sauce and Toro, while also evaluating the broader copper potential at Andacollo Gold. In closing this transaction, we are delighted to welcome Mr. Luis Catril as a significant shareholder and look forward to delivering substantial long-term value for all Galantas shareholders."
Completion of the Transaction
Sol owns
The total cash consideration payable under the Agreement and the Dragones Agreements is US
These payments will occur through structured staged cash payments by December 31, 2029, in order to align with development planning and capital discipline, and are broken down as follows:
On January 6, 2026: US
$3.5 million was paid by OXI to former Dragones shareholders, which was funded by the Streaming Agreements for US$0.5 million and a promissory note from Ocean Partners UK Ltd. for US$3.0 million (the "Promissory Note") (such Streaming Agreements and Promissory Note have been assumed by the Company as of the closing of the Sol Transaction ("Closing")).On Closing: US
$1.5 million was paid to Robert Sedgemore (the "Sol Payment").On December 31, 2026: US
$3.5 million is payable to the Dragones shareholders.On December 31, 2027: US
$4.0 million is payable to the Dragones shareholders.On December 31, 2028: US
$6.0 million is payable to the Dragones shareholders.On December 31, 2029: US
$14.0 million is payable to the Dragones shareholders.
In addition to the cash consideration, Mr. Luis Catril, the controlling shareholder of Dragones, has been issued 91,313,890 common shares of Galantas (representing
Prior to Closing, Sol was owned
The Andacollo Gold Project is subject to two silver stream agreements (the "Streaming Agreements"), requiring delivery of
Additional details regarding the Transaction and the Andacollo Gold Project are included in Galantas' press releases dated January 6, 2026, March 31, 2026, and June 15, 2026, and in the Company's management information circular dated May 12, 2026. The Company has also filed a technical report for the Andacollo Gold Project in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects. Each of these documents are available on the Company's profile on SEDAR+ at www.sedarplus.ca.
Issued Share Capital on Admission and Total Voting Rights
Application will be made for the admission of 91,313,890 common shares pursuant to the Transaction, with admission expected to occur on or around Closing ("Admission").
Following Admission, the Company's issued share capital will consist of 829,500,590 common shares each with one voting right per share. There are no shares held in treasury. The Company notes that the figure of 829,500,590 for the total issued share capital referred to in this news release is accurate and correct.
When calculating the total number of voting rights, shareholders should use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
About Galantas Gold Corporation
Galantas Gold Corporation is a publicly traded gold and copper company focused on the acquisition, development, and advancement of gold and copper assets in stable mining jurisdictions. The Company is currently advancing the development of the Indiana Project and the Andacollo Gold Project in Chile. Galantas' strategy is to build long-term shareholder value through disciplined capital allocation, technically rigorous project evaluation, and responsible development of high-quality mineral assets.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: info@galantas.com
Website: www.galantas.com
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, Elliot Peters
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Brokering)
Telephone: +44(0)20 3470 0470
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995.
Forward-looking information in this news release includes, but is not limited to, statements regarding the timing and ability of the Company to make the staged payments to the former Dragones shareholders; the Company's ability to maintain its indirect
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, including, without limitation, assumptions regarding: the Company's ability to satisfy its payment obligations under the applicable agreements; the availability of financing on reasonable terms; commodity prices; exchange rates; the receipt and maintenance of required regulatory approvals and permits; the accuracy of mineral resource estimates; and the Company's ability to execute its development plans as contemplated.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied thereby, including, without limitation: the risk that the Company may not be able to complete the staged payment obligations, which could result in the loss of all or part of its interest in the Andacollo Gold Project; risks relating to financing, development and operating activities; commodity price volatility; permitting and regulatory risks; uncertainties inherent in mineral resource estimates; and general economic, market and business conditions.
Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information except as required by applicable law.
Neither TSXV nor its Regulation Services Provider, as that term is defined in the policies of the TSXV, accepts responsibility for the adequacy or accuracy of this news release.
The Company is admitted to trading on AIM and, accordingly, further disclosure may be found on the Company's profile on the London Stock Exchange website.
The information contained in this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014, which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. This information is disclosed in accordance with the Company's obligations under Article 17 of UK MAR. Upon publication of this announcement, this inside information is now considered to be in the public domain.
SOURCE: Galantas Gold Corporation
View the original press release on ACCESS Newswire