Galantas snaps up Chilean gold project, shares glitter

7th Jan 2026 09:06

(Sharecast News) - Shares in Galantas Gold Corporation soared nearly 200% on Wednesday, after the Canadian miner struck a deal to buy a major gold project in central Chile.

The Toronto-based group, which is listed on AIM and the TSX Venture Exchange in Canada, has agreed to buy the Andacollo Oro Gold Project in the country's Coquimbo Region.

The project is a past-producing, large-scale open pit heap leach gold operation, with infrastructure and permits already in place alongside "extensive" historical technical data. Measured and indicated mineral resources are estimated to be an aggregate 2.02m ounces of gold.

Mario Stifano, chief executive, said: "This transaction represents a clear step-change in the scale and profile of Galantas.

"[It] fundamentally repositions the company, adding a large-scale post-producing gold asset...in one of Chile's most established mining districts."

As at 1045 GMT, the stock had soared 193% to reach a record 30p.

The project is ultimately owned by Sol de Oro Mining, which in turn is 100% owned by Robert Sedgemore, Galantas' senior vice president, operations. Sol was established as a dedicated transaction vehicle to consolidate ownership and facilitate the acquisition, Galantas noted.

Under the terms of the deal, Galantas will pay $32m in cash over a four-year period, to align with development planning and capital discipline.

Luis Catril, the former owner of the project, will also receive 91m common shares in Galantas, representing a 19.9% stake, once the deal completes, while Sedgemore will receive $1.5m in cash.

Sol owns 100% of Compania Minera OXI, which was also established as a dedicated transaction vehicle and in turn owns Dragones, which is controlled by Catril.

Mining veteran Sedgemore joined Galantas late last year, along with non-executive director Lawrence Roulston, after the two men agreed to sell their shareholdings in RDL Mining Corp to the miner.