Galantas Gold Corporation proposes to expand its operations by creating a combined company with RDL Mining Corp to advance the Indiana gold-copper operating mine project in Chile.
FUNDRAISE
The Canadian company is currently focused on the Cavanacaw gold mine in Omagh, Northern Ireland and the Gairloch gold-bearing volcanogenic massive sulphide deposit in the northwest Highlands of Scotland.
The Indiana mine is located 1,470 metres above sea level, within the “rich copper‑gold‐silver belt” of the coastal cordillera of the Atacama region, and is ready for “immediate expansion”.
RDL holds an option to acquire a 100% interest from Minería Activa SpA, subject to conditions and regulatory approval.
Galantas has signed a share purchase agreement to acquire all of RDL’s shares in exchange for common shares in Galantas.
RDL’s three shareholders will each receive approximately 44 million Galantas shares, totalling 132m, which is equal to 49.99% of the issued and outstanding Galantas shares following the issue of the RDL Shares.
Galantas said it also intended to raise up to US$7 million via a brokered private placement of up to 87.5m units of Galantas, at $0.08 per unit.
Each unit comprises one Galantas share and one warrant, valid for 36 months, exercisable at C$0.12 per Galantas share, once the financing completes which is expected on 4 December 2025.
Agents will be allowed to raise up to an additional C$1.05m through sales of additional units, in return for 7% in cash of the financing.
Galantas said that its shareholders, who own 57% of the company, will vote in favour of the transaction.
On completion of the deal, each RDL shareholder will hold approximately 12.5% of the issued and outstanding Galantas shares.
Galantas will also appoint RDL shareholders Lawrence Roulston as a board non-executive director and Robert Sedgemore as its senior vice president, operations.
Mssrs Roulston and Sedgemore are current shareholders and directors of RDL.
The third RDL shareholder Dorian L. (Dusty) Nicol will act as a special exploration advisor to Galantas.