Galantas Gold set to acquire Chilean project in US$32 million deal

Galantas Gold Corp. [GAL-TSXV, AIM, GALKF-OTCQX] has announced details of a share purchase agreement to acquire a 100% interest in the Andacollo Oro Gold Project in Central Chile. The project is a past-producing, large-scale open pit heap leach gold operation with existing infrastructure, permits and extensive historical technical data.

“The acquisition of the Andacollo Oro Project fundamentally repositions the company, adding a large-scale, past producing gold asset with existing infrastructure, permits, and a deep technical database in one of Chile’s most established mining districts.’’ said Galantas CEO Mario Stifano.  It produced 1.12 million ounces of gold from 1998 and 2018, with peak production reaching 125,000 ounces annually.

The agreement would see Galantas acquiring 100% of the shares of Sol de Oro Mining Ltd., which in turn owns 100% of Compania Minera OXI Spa (OXI). OXI has purchased 100% of the shares of Compania Minera e Inmobiliaria Dragones SpA (Dragones), the owner of the project, pursuant to certain share purchase agreements dated January 6, 2026 with the former Dragones shareholders.

Sol and OXI were established as dedicated transaction vehicles to consolidate ownership and facilitate the acquisition of the project. Sol is owned 100% by Robert Sedgemore, who is an executive officer of Galantas and is a non-arms length party as defined in the TSX Venture Exchange policies in relation to Galantas. As a result, the transaction constitutes a “related party transaction.’’

Subject to TSX approval, the total cash consideration payable under the agreement and the Dragones agreements is US$32 million, an amount that will be structured in staged payments over four years to align with capital discipline. That includes US$4.5 million on closing and the assumption of debts held by OXI and Sol of approximately US$3.0 million, and US$1.5 million payable to Sol shareholder Robert Sedgemore as consideration for 100% of the shares of Sol. The balance of the payments will be spread over four years, starting on December 31, 2026 with a US$3.5 million payment to Dragones shareholders.

In addition to the cash, on closing, Luis Catril, the controlling shareholder of Dragones, will receive 91.3 million common shares of Galantas (representing a 19.9% interest) subject to TSXV and Galantas shareholder approval, excluding Sedgemore as the connected party to the transaction.

Galantas Gold shares were unchanged Wednesday at 23 cents. The shares trade in a 52-week range of 25 cents and $0.04.

The company expects to fund the cash consideration from a combination of future financing and or working capital. K2 Resources Inc. and ExGen Resources Inc. [EXG-TSXV, BXXRF-OTC] each hold silver streams on the property, each requiring delivery of 33.4% and 66.6% respectively, of each payable ounce of silver produced at the property to K2 and ExGen until the payment of 33,334 ounces of silver to K2 and 666,667 ounces of silver to ExGen is complete, and after which 16.7% and 33.3%, respectively, of each ounce of silver produced will be delivered to each of K2 and ExGen.