Galantas Gold Reports Q3 2025 Loss and Strategic RDL Mining Acquisition

Cash, funding and going concern: why liquidity matters

Despite a positive $146,134 operating cash inflow before working capital changes in the quarter, the company ended with $19,943 of cash. The going concern note is explicit: continued operations depend on meeting cash flow forecasts and securing further financing. The company remains reliant on supportive stakeholders – related-party advances were $1,145,179 year-to-date.

Positively, the Ocean Partners deal removed large liabilities and capped near-term Omagh spend. Negatively, day-to-day corporate cash needs remain, and finance costs were still material in Q3. Until new funding closes, liquidity risk is high.

RDL Mining acquisition and the Indiana Project: the new pivot to Chile

After the quarter end, on 13 November 2025, Galantas agreed to acquire all the shares of RDL Mining Corp. in exchange for about 132 million Galantas shares – 49.99% of the enlarged share capital on issue of the RDL consideration shares. Each of the three RDL vendors will also receive a 0.66% NSR over the Indiana gold-copper project in Chile (aggregate ~2%). Completion needs TSXV approval and other conditions.

About the Indiana Project:

• Operating gold-copper project in Chile’s coastal cordillera, ready for expansion, over 923 hectares. RDL holds an option to acquire 100% from Minería Activa SpA.
• Option terms require US$15 million of staged payments over five years and a minimum spend of US$1 million per year on exploration/development. The first US$500,000 was advanced by Ocean Partners as an advance to Galantas in Q4 2025.
• Until the option is exercised, the project is leased with a 10% NSR payable to Activa, with minimums linked to option payments. There is also an existing 2.5% NSR over roughly 40% of concessions.
• RDL has a copper stream with 1555070 B.C. Ltd. for $550,000 up-front: 6% of payable copper to 2,000,000 lb, then 3%, with 155 paying 20% of spot on delivery.

Funding plan: alongside the deal, Galantas launched a brokered private placement at $0.08 per unit (one share plus a whole warrant at $0.12 for 36 months). Initially up to $7 million, this was upsized on 21 November 2025 to up to $13.5 million (168,750,000 units), with an enlarged over-allotment option. Closing is targeted around 10 December 2025, subject to TSXV approval.

Key numbers from the quarter

Metric (CAD$ unless noted)	Q3 2025	Q3 2024
Recognised revenue	$0	$0
Provisional concentrate sales (US$)	US$566,000	US$528,000
Net loss	$5,004,687	$740,629
General administrative expenses	$1,761,260	$1,174,156
Loan interest and bank charges	$988,244	$421,213
Loss on disposal of subsidiaries	$2,885,663	$0
Operating cash flow before WC changes	$146,134	$21,801
Cash at period end	$19,943	$383,011
Working capital deficit	$2,557,662	$14,098,845
Shares outstanding	132,400,637	114,770,587

My take: the good, the bad, the strategic

What I like

• Balance sheet reset: transferring 80% of Omagh to a partner removed heavy liabilities and future site obligations, while keeping 20% exposure and royalty optionality.
• Free carry: Ocean Partners funds the Initial Term, reducing near-term cash burn at Omagh.
• Clear operational safety record: zero lost time accidents since underground operations began. High regulatory compliance continues.

What bothers me

• Cash is razor thin at $19,943. The going concern warning is justified until the concurrent financing completes.
• Cost of capital has been high: nearly $1.0 million of interest in the quarter. While debenture balances have fallen, finance costs still bit into the P&L.
• No recognised revenue yet; concentrate sales continue to be capitalised. With Omagh now an associate, the path and timing to commercial production is less directly in Galantas’ hands.

The strategic pivot

The proposed RDL acquisition pivots Galantas from a Northern Ireland-centric developer to a Chile-focused growth story with an optioned, operating gold-copper asset. It is a bold move that significantly enlarges the share count (RDL vendors to 49.99% pre-financing) and introduces layered royalties and a copper stream. Execution – funding, permitting and operating delivery in Chile – becomes the new yardstick.

What to watch next

• Funding close: completion of the upsized private placement of up to $13.5 million at $0.08 per unit. Liquidity relief is critical.
• Regulatory sign-off: TSXV approvals for the RDL transaction and financing.
• Indiana Project spend: meeting the US$15 million option schedule and the minimum US$1 million annual work commitment.
• Omagh progress: Ocean Partners’ execution during the Initial Term and whether Galantas elects to convert its 20% stake to a 3.0% NSR.
• Debt and interest: evidence that finance costs continue to decline after debenture conversions and settlements.

Final word

This quarter was less about operating metrics and more about rewiring the company. The Ocean Partners deal simplified the balance sheet and ring-fenced Omagh spend. The planned RDL acquisition, if funded and approved, gives Galantas a fresh growth vector in Chile but comes with dilution and new obligations. With only $19,943 of cash at quarter end, the near-term share placing is the pivotal catalyst. If it completes as planned, the story shifts to project delivery – in both Chile and, through its associate stake, Northern Ireland.

For the full filings and MD&A, see SEDAR or galantas.com. As ever, do your own research and size positions to risk.