Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) announced 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 strategically located concessions in prospective mineral belts, and management believes the projects offer compelling geological characteristics and operational synergies with the company's existing regional land holdings.
The LOI marks a significant step for Grafton as it seeks to strengthen its exploration portfolio in Chile. The company views the broader district as highly prospective and expects that the acquisition, if completed, will enhance future exploration planning and regional-scale targeting opportunities. Campbell Smyth, Chief Executive Officer of Grafton, stated: "We are very pleased to have reached this stage. 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."
The parties intend to negotiate a definitive agreement, subject to satisfactory tax, corporate, and securities law advice. Completion of the acquisition remains conditional upon due diligence, execution of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including approval from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation except for customary provisions. Newmont is an arm's length party to Grafton.
Grafton Resources is a Canadian exploration company listed on the CSE, focused on discovering and developing mineral assets in the Americas. The company is committed to responsible exploration and generating shareholder value through disciplined project advancement. Further details about the proposed acquisition will be disclosed as material developments occur, in accordance with securities laws and CSE policies.
For more information, refer to Grafton's filings on SEDAR+. This news release contains forward-looking statements involving risks and uncertainties, including those related to the completion of the acquisition, exploration risks, regulatory approvals, and market conditions. Readers are cautioned not to place undue reliance on forward-looking information.
