Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) announced it has entered into a non-binding letter of intent 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 anticipates that the projects, if acquired, would complement its existing regional land holdings and enhance exploration planning. Management believes the projects demonstrate attractive geological characteristics and potential operational synergies with nearby properties. Grafton considers the broader district highly prospective and expects the consolidation to improve 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, 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 subject to due diligence, negotiation of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including from the Canadian Securities Exchange. The letter of intent does not create a binding obligation, except for customary provisions.
Newmont is 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. The CSE has not passed upon the merits of the matters referenced and has neither approved nor disapproved the contents of this news release.
Grafton Resources is a Canadian exploration company listed on the CSE, focused on mineral asset discovery and development in the Americas. The company is committed to responsible exploration and generating shareholder value through disciplined project advancement.
