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Hochschild Mining PLC on Wednesday said its Tiernan Gold Corp subsidiary has agreed the reverse takeover of Railtown Capital Corp, in a bid to unlock value from its Volcan project in Chile. Shares in the London-based gold and silver miner shot up 9.1% to 335.20 pence in London on Wednesday, with support also coming from a record gold price. Hochschild said Tiernan Gold, which is developing the Volcan gold project in Chile, has signed a letter of intent with Canadian shell company Railtown Capital which will result in the reverse takeover. The new entity is expected to become listed on Canada’s TSX Venture Exchange. In August 2023, Hochschild, through Tiernan, said it had been evaluating strategic options aimed at maximising the value of Volcan. The company said the reverse takeover will enable Tiernan to independently secure external financing for the project’s future development. Completion is subject to a number of conditions including completing an equity financing and completion of due diligence. Hochchild will own 87% of the new entity and Railtown 13%. Completion of the deal is targeted for November. Fausto Di Trapani, currently chief financial officer of MAG Silver Corp, is to be appointed CEO of combined entity. Hochschild Mining CEO Eduardo Landin said the deal marks an ‘important step forward’ for Tiernan Gold and reflects the significant amount of work completed over the past few years on the Volcan project. ‘As part of our broader strategy to evaluate strategic alternatives for non-core assets, we have chosen this route to unlock value from Volcan while allowing Hochschild to focus its resources on our high-quality portfolio in Peru, Brazil, and Argentina. With continued strength in gold prices, we believe this structure offers the best path to maximise long-term value for all stakeholders,’ he added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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