Galantas Gold Corporation (TSX-V: GAL | AIM: GAL) has announced it has entered into a doré purchase contract and secured access to a US$10 million advance payment facility with Ocean Partners USA, Inc., effective 4 November 2026, in connection with its Andacollo Gold heap leach project in Chile. The agreement commits Galantas's Chilean subsidiary, Galantas Gold Chile SpA, to sell 100% of refined gold and silver produced at Andacollo Gold to Ocean Partners during the contract term. The arrangement is classified as a related party transaction under both AIM Rules and Canadian securities regulations, given Ocean Partners holds more than 10% of Galantas's outstanding common shares. Investors will be watching the development closely as the company advances Andacollo Gold towards commercial production.

Key Points

  • Galantas Gold Corporation (TSX-V: GAL | AIM: GAL) is a gold and copper development company focused on Chilean mineral assets.
  • The company has signed a doré purchase contract with Ocean Partners USA, Inc. and secured access to a US$10 million advance payment facility tied to future production at the Andacollo Gold project.
  • The agreement carries an initial term of three full calendar years following commercial production commencement, with automatic 12-month extensions thereafter; advance payments bear interest at 3-month CME Term SOFR plus 4.5%.
  • Investors should monitor progress towards commercial production at Andacollo Gold and any drawdowns against the US$10 million advance payment facility.

Andacollo Gold Heap Leach Project Gains Commercial Framework Through Ocean Partners Doré Contract

Under the terms of the agreement, Galantas Gold Chile SpA will sell 100% of refined gold and silver contained in doré or other acceptable semi-refined product produced from the Andacollo Gold heap leach operations to Ocean Partners. The initial contract term runs for three full calendar years from the commencement of commercial production, automatically extending in successive 12-month periods thereafter unless either party provides 12 months' notice of termination, which cannot be given until two full calendar years after commercial production begins. Ocean Partners will apply a transaction fee of US$3.50 per troy ounce of gold delivered, plus a commission of one-sixth of one per cent, with pricing based on payable refined metal content and applicable gold and silver prices during an agreed quotational period.

US$10 Million Advance Payment Facility Terms and Provisional Payment Structure

Alongside the purchase contract, the agreement permits Galantas Gold Chile SpA to request advance payments from Ocean Partners of up to a combined maximum of US$10.0 million outstanding at any one time against future production. These advances will bear interest at 3-month CME Term SOFR plus 4.5% and must be repaid through doré or refined metal deliveries, or in cash, within 120 days of drawdown. Provisional payments for each doré delivery will equal 95% of the estimated delivery price, less applicable advance payments or fees, and will carry a financing charge of 3-month CME Term SOFR plus 2.25% until final settlement is reached.

Related Party Disclosure: Ocean Partners' Shareholding and Director Connection Trigger AIM Rule 13

Ocean Partners beneficially owns or controls more than 10% of Galantas's outstanding common shares, making it a related party under both AIM Rule 13 and Canadian Multilateral Instrument 61-101. Additionally, Brent Omland, a Galantas director, serves as Chief Executive Officer of Ocean Partners. Mr Omland disclosed his interest to the board and was excluded from deliberations and the approval vote. The disinterested directors, having consulted with Nominated Adviser Grant Thornton UK Advisory & Tax LLP, concluded the terms of the agreement are fair and reasonable to shareholders. Galantas is relying on available exemptions from formal valuation and minority shareholder approval requirements under MI 61-101.

Galantas's Chilean Growth Strategy and Risks Specific to Andacollo Gold Development

Galantas Gold Corporation is focused on acquiring and advancing gold and copper assets in stable mining jurisdictions, with its primary development asset being Andacollo Gold in Chile alongside the Indiana exploration project. The company's ability to draw on the advance payment facility remains subject to conditions including delivery of holding certificates and maintenance of required metal coverage ratios based on estimated recoverable refined metals on the heap leach pads. Key risks specific to this arrangement include timing and quantity of doré production, commodity price volatility affecting settlement values, and the satisfaction of conditions precedent to advance payments, all of which could affect the commercial benefits Galantas expects to derive from the agreement.