The board of Galantas Gold Corporation has announced a brokered private placement designed to raise up to $85 million. The financing will be conducted on a “best efforts” agency basis under which the company expects to issue up to 154,546,000 Units at an issue price of $0.55 per Unit. Brokered private placement in this context refers to a capital-raising transaction arranged by a financial intermediary under limited disclosure and resale conditions.
Canaccord Genuity Corp. has been appointed as sole bookrunner and lead agent for the offering, and an expected closing date has been set for May 28, 2026, subject to customary conditions and regulatory approvals.
Table of Contents:
Offer mechanics and investor instruments
Each Unit comprises one common share of the company and one-half of a Warrant, meaning two Units equate to one full warrant. Each whole Warrant will allow the holder to acquire one common share at a subscription price of $0.80 within 24 months from the closing of the financing. The securities issued in connection with the placement will carry a Canadian statutory Hold Period of four months and one day following closing. The company has also included an acceleration mechanic: if the closing price of the common shares on the TSX Venture Exchange (TSXV) exceeds $1.00 for ten consecutive trading days after the hold period, Galantas may accelerate warrant expiry to 30 days after notice.
Warrant acceleration trigger
The acceleration clause is intended to protect the company from long-dated exercise obligations should the share price reach sustained higher levels. Under this provision, the company may issue a notice to warrant holders if the TSXV closing price condition is met, shortening the remaining optionality period. This mechanism balances the interests of shareholders and new investors by reducing dilution uncertainty while preserving the initial two-year exercise window unless the specified market threshold occurs.
Agent option and additional units
Galantas has granted the Agent an option to sell up to an additional 27,273,000 Units at the same issue price, which would raise up to an extra $15 million of gross proceeds if exercised in full. This overallotment facility is standard in brokered placements to allow for additional demand and to stabilize underwriting execution. The Agent’s option increases flexibility for the transaction while maintaining the same terms for any additional Units issued under that option.
Use of proceeds and offering jurisdictions
The net proceeds from the offering are earmarked primarily for exploration and development activities at the Indiana Gold and Copper Project and the Andacollo Gold Project in Chile, with the remainder allocated to general corporate and working capital needs. Units will be offered across Canadian provinces and territories relying on prospectus exemptions; they may also be offered in the United States under applicable exemptions and in other jurisdictions as agreed with the Agent, subject to local rules. The securities have not been registered under the U.S. Securities Act of 1933 and therefore cannot be offered or sold in the United States or to U.S. persons except under an available exemption.
Governance, regulatory matters and company outlook
Certain company insiders are expected to participate in the financing, which qualifies as a related party transaction under Multilateral Instrument 61-101 (MI 61-101). Galantas intends to rely on exemptions from the formal valuation and minority approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the securities issued and consideration paid by insiders will not exceed 25% of the company’s market capitalization. The closing remains conditional on obtaining the required TSXV approvals and satisfying normal closing conditions.
Forward-looking statements and risk disclosure
This announcement contains forward-looking statements about the financing and use of proceeds that depend on a range of assumptions and are subject to risks and uncertainties. These include receipt of regulatory approvals, timing of closing, future commodity prices, operational costs, access to property and contractor availability. Readers and investors are cautioned not to place undue reliance on forward-looking statements. The company will update such statements only as required by applicable securities laws.
About Galantas and contacts
Galantas Gold Corporation is a publicly traded exploration and development company focused on building value through disciplined project advancement of gold and copper assets in stable jurisdictions. The company is advancing the Indiana Project and expects to complete the acquisition of the Andacollo Project through a definitive share purchase agreement for Sol, subject to approvals. For further information, investors may contact Mario Stifano, Chief Executive Officer, via the company website. Nomad and broker details include Grant Thornton UK LLP and SP Angel Corporate Finance LLP, who are acting in their respective advisory capacities for the transaction.
