Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) announced Wednesday that it has signed a non-binding letter of intent (LOI) with Newmont USA Limited to acquire two gold-focused exploration projects in Chile. The proposed acquisition aligns with Grafton’s strategy of consolidating a district-scale position in prospective mineral belts within the country.
The company believes the projects demonstrate attractive geological characteristics and offer potential operational and exploration synergies with its existing land holdings in the region. Grafton considers the broader district highly prospective and expects the consolidation of strategically located concessions to enhance future exploration planning and regional-scale targeting opportunities.
“We are very pleased to have reached this stage,” said Campbell Smyth, Chief Executive Officer of Grafton. “The Proposed Acquisition aligns with Grafton’s strategy of building a strong district-scale position in prospective mineral belts within Chile. We believe the Projects may offer compelling geological and operational synergies with our existing land holdings, and we look forward to advancing discussions toward a Definitive Agreement.”
The parties intend to negotiate a definitive agreement, subject to satisfactory tax, corporate, and securities law advice. Completion of the acquisition remains conditional on due diligence, execution of definitive documentation, and receipt of necessary corporate and regulatory approvals, including from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation except for certain customary provisions.
Newmont is considered an arm’s length party to Grafton. Further details will be disclosed as material developments occur, in accordance with applicable securities laws and CSE policies.
For more information on the risks and challenges associated with the company’s business, investors are encouraged to review Grafton’s filings on SEDAR+.
