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Hochschild Mining PLC on Tuesday said subsidiary Tiernan Gold Corp has entered into a definitive business combination agreement with Railtown Capital Corp. London-based Hochschild is a gold and silver miner in Argentina, Brazil and Peru. Under the terms of the agreement, Railtown will be the subject of a reverse takeover by Tiernan, with it set to change its name to Tiernan Gold Corp on completion. Last month, Hochschild said Tiernan Gold, which is developing the Volcan gold project in Chile, had signed a letter of intent with Canadian shell company Railtown Capital which will result in the reverse takeover. In August 2023, Hochschild, through Tiernan, said it had been evaluating strategic options aimed at maximising the value of Volcan. The company has said the reverse takeover will enable Tiernan to independently secure external financing for the project’s future development. Hochschild said Tiernan is raising money through a brokered private placement of subscription receipts, a condition of the RTO. The financing is expected to raise a minium of C$35 million, about $25 million, for Tiernan, with the proceeds earmarked for development of the Volcan gold project. Hochschild Independent Non-Executive Director Jill Gardiner has agreed to serve as chair of the combined entity, said the company, with Fausto Di Trapani, currently chief financial officer of MAG Silver Corp, to serve as chief executive. Shares in Hochschild Mining were 0.5% lower at 382.60 pence on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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