Galantas signs agreement to acquire Chile’s Andacollo gold project

Core Viewpoint - Galantas Gold has signed an agreement to acquire a 100% ownership interest in the Andacollo Oro gold project in Chile, which is expected to significantly reposition the company in the mining sector [1][3]. Group 1: Project Details - The Andacollo Oro gold project is located in the Coquimbo Region of Chile, approximately 55km from La Serena, and features existing infrastructure and permits for an open-pit heap leach gold mine [1]. - Historical mineral resource estimates indicate measured and indicated resources totaling 2.02 million ounces (moz) of gold, with an inferred resource of 5.06 moz [2]. Group 2: Acquisition Structure - The acquisition involves a cash consideration of $32 million (C$44.17 million) over four years, contingent upon regulatory approvals [5]. - The transaction includes acquiring Sol de Oro Mining, which owns Compañía Minera OXI, and subsequently Compañía Minera e Inmobiliaria Dragones, the project owner [4]. Group 3: Strategic Implications - The project has a nameplate capacity of 200,000 ounces per annum from an Adsorption–Desorption–Recovery plant, providing multiple development pathways and options for Galantas [4]. - The acquisition is seen as a strategic move to enhance the company's portfolio with a large-scale, past-producing gold asset in a well-established mining district [3].