Highlights

  • Galantas shares rose 182.93% to 29.00 GBX following the acquisition announcement.
  • The company agreed to acquire 100% of the Andacollo Oro Gold Project in Chile.
  • The transaction includes a staged cash consideration of USD 32.0 million over four years.

Galantas Gold Corporation (LSE:GAL) recorded a sharp rise in its share price after announcing an agreement to acquire full ownership of the Andacollo Oro Gold Project in central Chile. The transaction, disclosed on 6 January 2026, involves a past-producing gold operation and is expected to be classified as a Fundamental Acquisition under TSX Venture Exchange policies.

Share Price Records Sharp Movement

Galantas Gold Corp shares traded at 29.00 GBX, up 18.75 GBX or 182.93% on the day following the announcement. The sharp increase in share price came after the company confirmed it had entered into a definitive share purchase agreement to acquire the Andacollo Oro Gold Project.

Transaction Overview

Under the agreement, Galantas will acquire 100% of Sol de Oro Mining Ltd., which indirectly owns the Andacollo Oro Gold Project through its Chilean subsidiaries. The project is located in the Coquimbo Region of central Chile, approximately 55 kilometres southeast of La Serena.

The total cash consideration under the transaction and related agreements amounts to USD 32.0 million, structured as staged payments extending through to December 2029. An initial payment of USD 4.5 million is due at closing, which includes the assumption of approximately USD 3.0 million in existing debt and a USD 1.5 million payment for the acquisition vehicle.

Equity Issuance and Ownership Changes

As part of the transaction, Galantas will issue 91,313,890 common shares to the controlling shareholder of the project owner. The issued shares represent 19.9% of the company’s issued share capital as of 6 January 2026, subject to shareholder and regulatory approvals.

The shares will be issued at a price aligned with market pricing under TSXV policies and are expected to be subject to escrow and resale restrictions.

Project Background

The Andacollo Oro Gold Project is a past-producing open pit heap leach operation with historical gold production of approximately 1.12 million ounces between 1998 and 2018. The site includes existing infrastructure, permits, leach pads, and processing facilities.

A historical mineral resource estimate outlines measured and indicated resources of 2.02 million ounces of gold, with an additional 5.06 million ounces classified as inferred. The project has been supported by extensive historical drilling and technical studies.

Regulatory Process and Next Steps

The acquisition is subject to regulatory approvals, including TSXV acceptance and minority shareholder approval under applicable rules. The company stated that no finder’s fees were paid in connection with the transaction.