No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - AIM-listed Canadian gold miner Galantas Gold on Monday announced the acquisition of a crushing plant capable of processing 20,000 tonnes of ore per day, which the company called a "major milestone" for its Andacollo project in Chile.
The plant was bought for a total $4.2m, with completion subject to an asset purchase agreement and satisfaction of certain conditions, including regulatory and corporate approvals.
Toronto-headquartered Galantas said the acquisition is a key component of the planned development of the Andacollo Gold Project.
The plant is located in Mexico and so needs to be relocated to the mine site. As such, Galantas has appointed the engineering firm M3, which has begun work on disassembly planning, logistics, and preparation for reassembly and commissioning in Chile.
If all goes to plan, gold production at Andacollo is expected to start in the first quarter of 2027.
Mario Stifano, chief executive, said the deal "materially advances the development" of Andacollo.
"Securing a high-quality, proven crushing plant significantly reduces project execution risk, shortens the development schedule and represents substantial capital savings compared with constructing a new crushing facility."
Galantas Gold shares were down 2.3% at 21p by 1453 BST, having jumped more than 200% so far this year.
See the latest RNS on Investegate.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.