Galantas Gold Corporation (AIM:GAL), together with its subsidiary Compañía Minera OXI SpA, has amended a share purchase agreement with Luis Catril, a former shareholder of Compañía Minera e Inmobiliaria Dragones SpA, to restructure the timing of outstanding cash payments.
The TSX-V and AIM-listed gold developer, whose OXI subsidiary owns 100% of Dragones and its Andacollo Gold Project in Chile, paid US$5.0 million today and will pay a further US$9.0 million by 25 April 2027, replacing a US$14.0 million payment originally due on 31 December 2029.
Galantas has also become a guarantor and joint and several co-debtor for the remaining obligations.
Total cash consideration under the wider Dragones Agreements stands at US$31 million, of which US$9.0 million has now been paid alongside 91.31 million Galantas shares issued to Catril.
The remaining US$22.0 million falls due in stages: US$3.0 million by the end of this year, US$9.0 million by 25 April 2027, US$4.0 million by the end of 2027 and US$6.0 million by the end of 2028, a year earlier than the original 2029 deadline.
Missed payments would allow former Dragones shareholders to reclaim their shares in Dragones, with partial payments forfeited.
Catril has acknowledged full payment of the shares owed and released Galantas from related disputes.
The company classified the amendment as a related-party transaction under both Canadian and AIM rules, given Catril's stake exceeds 10% of Galantas shares outstanding.
News Intelligence what this means for the company
Galantas has restructured its Dragones acquisition payments with former shareholder Luis Catril, accelerating US$5m in cash today and pulling forward the final US$6m payment by a year to end-2028, while becoming guarantor for all remaining obligations totalling US$22m. The amendment reflects Galantas's effort to manage near-term liquidity against its Andacollo development timeline, though it increases the company's contingent liability if payments slip—missed instalments trigger share clawback rights for former Dragones shareholders.
The acceleration concentrates Galantas's cash outflows (US$3m due end-2026, US$9m by April 2027, US$4m by end-2027, US$6m by end-2028) against project development spend, including the US$4.2m crushing plant purchase already committed. Galantas's guarantee status raises execution risk: any payment default triggers loss of Dragones shares, jeopardising the Andacollo asset that underpins the company's near-term value case.
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