06:23 AM EST, 01/07/2026 (MT Newswires) -- Galantas Gold ( GALKF ) late on Tuesday said it has agreed to acquire the Andacollo Oro gold project in Chile.

The project is a large-scale open pit heap leach gold operation with existing infrastructure, permits and historical technical data. It has exploration potential for both additional gold and copper mineralization.

Under the agreement, Galantas will acquire 100% of the shares of Sol de Oro Mining, which owns 100% of Compania Minera OXI SpA. OXI has purchased 100% of the shares of Compania Minera e Inmobiliaria Dragones SpA, the owner of the project.

The total cash consideration is US$32 million, structured as staged payments over four years.

In addition to the cash consideration, at deal closing, Luis Catril, the controlling shareholder of Dragones, will receive 91.3 million common shares of Galantas, representing 19.9% of the issued and outstanding common shares of Galantas as of Jan. 6, 2026.

A historical mineral resource with an effective date of Aug. 23, 2021, estimates the project's measured and indicated mineral resources at 2.02 million ounces of gold, consisting of 130 million tonnes at 0.48 gold grams per tonne. Inferred mineral resources are estimated at 5.06 million ounces of gold, consisting of 358 million tonnes at 0.45 gold grams per tonne.

According to the report, the project operated as a 20,000 tonne-per-day open pit heap leach operation, producing a cumulative 1.12 million ounces of gold between 1998 and 2018, with peak annual production of about 135,000 ounces of gold.

"This transaction represents a clear step-change in the scale and profile of Galantas," said CEO Mario Stifano. "Importantly, this acquisition complements our ongoing work at the Indiana Gold-Copper Project, where a Preliminary Economic Assessment is underway and drilling is planned for the first quarter of 2026. Together, these assets mark an evolution of Galantas from a single-asset company into a multi-asset platform."

Deal closing is subject to TSX Venture Exchange approval, including approval of the deal as a fundamental acquisition, satisfaction of all regulatory requirements, receipt of shareholder approvals and other customary closing conditions.