VANCOUVER, BC - Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) announced today that it has entered into a non-binding letter of intent (LOI) with Newmont USA Limited to acquire two gold-focused exploration projects in Chile. The proposed acquisition, if completed, would expand Grafton's exploration footprint in the country and complement its existing land position.
According to the company, the projects exhibit attractive geological characteristics and offer potential operational and exploration synergies with nearby properties already held by Grafton. Management views the broader district as highly prospective and believes that consolidating strategically located concessions could enhance future exploration planning and regional-scale targeting opportunities.
Campbell Smyth, Chief Executive Officer of Grafton, commented: “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 and enter into a definitive agreement, subject to satisfactory tax, corporate, and securities law advice. Completion of the acquisition remains conditional on due diligence, negotiation and execution of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation to complete the transaction, except for certain customary binding provisions.
Newmont is an arm's length party to Grafton. Further details regarding the proposed acquisition will be disclosed as material developments occur, in accordance with applicable securities laws and CSE policies.
Grafton Resources is a Canadian exploration company listed on the CSE, focused on the discovery and development of mineral assets in the Americas. The company is committed to responsible exploration, strong community partnerships, and generating shareholder value through disciplined project advancement.
The CSE has not passed upon the merits of the matters referenced and has neither approved nor disapproved the contents of this news release.
Forward-looking statements in this release involve risks and uncertainties, including those related to the completion of the proposed acquisition, exploration plans, and potential mineralization. For more information on risks, investors should review the company's filings at www.sedarplus.ca.
