Palamina Corp. (TSXV: PA | OTCQB: PLMNF), a mineral exploration company focused on gold projects in Peru's Puno Orogenic Gold Belt, has confirmed the closing of its spin-out arrangement involving Colt Silver Corp., effective September 29, 2026. Under the transaction, Palamina distributed 23,308,708 Colt Silver common shares to its shareholders while retaining 4,577,766 shares, representing approximately 9.1% of Colt Silver's equity. The New Common Shares of Palamina began trading on the TSX Venture Exchange on September 29, 2026, under the same ticker symbol, PA. Investors may be watching closely as Colt Silver prepares for its own TSXV listing under the symbol "COLT."

Key Points

  • Palamina Corp. (TSXV: PA | OTCQB: PLMNF) confirmed the closing of its Colt Silver spin-out arrangement on September 29, 2026
  • 23,308,708 Colt Silver shares were distributed to Palamina shareholders; Palamina retained 4,577,766 Colt shares at approximately 9.1% equity
  • Colt Silver raised $600,000 via convertible debentures and Finco raised $2,450,000 via subscription receipts, both converting into Colt Silver shares on closing
  • Colt Silver has received conditional TSXV approval and will announce its trading commencement date under the symbol "COLT"

Spin-Out Structure and Share Distribution Mechanics

Under the arrangement agreement, each existing Palamina shareholder received 0.25 of one Colt Silver share for every Palamina common share held, along with one new Palamina common share in exchange for each existing common share. Holders of outstanding Palamina warrants are also entitled to 0.25 of one Colt Silver share for every share acquired upon due exercise of those warrants. Palamina's common shares were delisted at market close on September 28, 2026, and New Common Shares commenced trading the following morning with CUSIP 69607A109 and ISIN CA69607A1093, with the "PA" ticker symbol unchanged.

Colt Silver's Capital Structure and Concurrent Financings

Colt Silver now has 50,355,421 shares issued and outstanding. Palamina shareholders collectively hold 46.3% of that total, Palamina itself holds 9.1%, and financing participants hold 44.6%. The $600,000 debenture offering converted at $0.10 per share into 6,135,613 Colt shares on closing. The $2,450,000 subscription receipt financing converted at $0.15 per share into Finco shares, which were then exchanged one-for-one for Colt Silver shares through an amalgamation. The release states proceeds are earmarked for exploration, drilling, community relations, engineering studies, and working capital at Colt Silver's Peruvian silver-copper projects.

Galena Project Technical Report and Colt Silver's Qualifying Property

Colt Silver holds seven silver-copper projects across southeastern, northeastern, and central Peru, with the flagship Galena Ag-Cu-Mn Project serving as the qualifying property for its TSXV listing application. A technical report prepared by Steven L. Park, M.Sc. C.P.G., entitled "NI 43-101 Technical Report: Galena Ag-Cu-Mn Project" and effective June 14, 2026, has been made publicly available on the Colt Silver website. Colt Silver has become a reporting issuer in British Columbia, Alberta, Saskatchewan, and Ontario, and a drill program at the Galena project is planned for fall 2026, according to the release.

Early Warning Disclosure and Palamina's Ongoing Peru Gold Focus

Andrew Thomson acquired 4,972,534 Colt Silver shares and 923,750 warrants exercisable at $0.05 per share through the spin-out and financings, representing approximately 9.9% of outstanding Colt shares on an undiluted basis and 11.5% on a partially diluted basis, triggering an early warning report requirement under National Instrument 62-104. Meanwhile, Palamina continues as a standalone exploration company focused on six gold projects in Peru's Puno Orogenic Gold Belt, primarily advancing the Usicayos Gold Project. The immediate share price impact was not clear from available public information.