Galantas Gold Announces Definitive Agreement to Acquire the Andacollo Oro Gold Project, Chile

Core Viewpoint - Galantas Gold Corporation has entered into a share purchase agreement to acquire a 100% ownership interest in the Andacollo Oro Gold Project in Chile, marking a significant strategic move for the company and expected to be classified as a Fundamental Acquisition under TSX Venture Exchange policies [1] Project Overview - The Andacollo Oro Gold Project is located in the Coquimbo Region of Chile, approximately 55 kilometers southeast of La Serena, at an elevation of 1,100 meters, featuring a substantial permitted footprint with mining concessions, land title, and water rights [2] - The project includes existing infrastructure, extensive earthworks, and three leach pads, providing excellent access to services and a skilled workforce [2] Historical Resource Estimates - The historical mineral resource estimate indicates measured and indicated resources of 2.02 million ounces of gold from 130 million tonnes at a grade of 0.48 grams per tonne, with inferred resources of 5.06 million ounces from 358 million tonnes at a grade of 0.45 grams per tonne [3] - The project has a historical production record of 1.12 million ounces of gold from 1998 to 2018, with peak annual production of approximately 135,000 ounces [4] Geological and Technical Aspects - The project features a low-sulphidation epithermal, manto-style gold system, supported by a robust technical database from 1,600 drill holes totaling approximately 190,000 meters [5] - The project is adjacent to the Carmen del Andacollo porphyry copper mine, which produces about 45,000 tonnes of copper per year [6] Strategic Importance - The acquisition is seen as a transformative step for Galantas, enhancing its profile and scale by adding a large-scale, past-producing gold asset with existing infrastructure and a deep technical database [7] - The project offers multiple development pathways and significant exploration potential for additional gold and copper mineralization [8] Transaction Structure - The total cash consideration for the acquisition is structured at US$32 million, with staged payments over four years, reflecting a commitment to capital discipline [12] - The transaction includes the issuance of 91,313,890 common shares to the controlling shareholder of Dragones, representing 19.9% of Galantas' outstanding shares, subject to approvals [12][13] Financial Overview - As of December 31, 2025, Sol, the entity acquiring the project, reported total assets of approximately US$4.28 million and total liabilities of approximately US$4.34 million, resulting in a loss of US$67,521 [10] Exploration Opportunities - The project has significant exploration upside, with potential for grade enhancement through angle-drilling and opportunities to increase resources along strike and down-dip of known mineralization [25] - There are indications of high-grade copper targets and numerous unexplored gold-copper occurrences on the project [26] Conditions to Closing - The completion of the transaction is subject to board approval, regulatory requirements, and shareholder approvals, including minority approval requirements [31][28]