**Summary**
Galantas Gold Corporation has announced a definitive agreement to acquire the Andacollo Oro Gold Project in Chile, marking a significant strategic expansion for the company. The project, located in the Coquimbo Region, is a past-producing, large-scale open-pit heap leach gold operation with existing infrastructure, permits, and a substantial historical mineral resource estimate of 2.02 million ounces of gold in measured and indicated categories, and 5.06 million ounces in inferred resources. The acquisition is structured as a share purchase agreement for 100% ownership of the project, with a total cash consideration of US$32.0 million paid in staged installments over four years. The transaction is expected to be a Fundamental Acquisition under TSX Venture Exchange policies and is subject to regulatory and shareholder approvals.
Key highlights include
**Project Overview** The Andacollo Oro Gold Project operated from 1998 to 2018, producing 1.12 million ounces of gold, with peak annual production of 135,000 ounces. It hosts a low-sulphidation epithermal gold system and has a robust technical database from 1,600 drill holes.
**Strategic Significance** The acquisition positions Galantas as a multi-asset company, complementing its Indiana Gold-Copper Project in Chile. CEO Mario Stifano emphasized the projects scale, existing infrastructure, and exploration potential for gold and copper.
**Transaction Structure** The deal involves acquiring shares of Sol de Oro Mining Ltd., which owns the project through subsidiaries. Robert Sedgemore, a Galantas executive, is a related party in the transaction, requiring minority shareholder approval under regulatory guidelines.
**Consideration and Payments** The US$32.0 million consideration includes staged cash payments and the issuance of 91,313,890 Galantas common shares (19.9% of outstanding shares) to Luis Catril, the controlling shareholder of the project.
**Exploration Potential** The project has significant exploration upside, including potential for grade enhancement, resource expansion, and porphyry-style gold-copper mineralization.
**Conditions and Approvals** The transaction is contingent on TSXV approval, regulatory compliance, shareholder approvals, and customary closing conditions.
Galantas aims to fund the acquisition through future financing and working capital, with plans to prepare an updated NI 43-101 technical report for the project. The company remains focused on disciplined growth and long-term value creation through its expanded asset portfolio.