Grafton Resources Targets Chilean Gold Expansion with Newmont Deal

Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) has entered into a non-binding letter of intent (LOI) with Newmont USA Limited to acquire two gold-focused exploration projects in Chile, the company announced Wednesday. The proposed acquisition aligns with Grafton's strategy of building a strong district-scale position in what management considers a highly prospective mineral belt.

The Projects, which are located in Chile, are expected to complement Grafton's existing regional land position and provide potential operational and exploration synergies with nearby properties currently held by the company. According to the LOI, the parties will negotiate a definitive agreement subject to satisfactory tax, corporate and securities law advice. Completion remains contingent on due diligence, execution of definitive documentation, and regulatory approvals, including from the Canadian Securities Exchange.

Campbell Smyth, Chief Executive Officer of Grafton, said in a statement: "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."

Newmont is an arm's length party to Grafton, meaning the two companies are not affiliated. The LOI does not create a binding obligation to complete the acquisition, except for certain customary binding provisions. Grafton cautioned that forward-looking statements involve risks, including the ability to complete the acquisition, exploration risks, and regulatory and political uncertainties.

The announcement comes as Grafton continues to expand its exploration portfolio in Chile, a country known for its rich mineral deposits. The company views the consolidation of strategically located concessions as a means to enhance future exploration planning and regional-scale targeting opportunities. Further details will be disclosed as material developments occur, in accordance with securities laws and CSE policies.

For more information on the company and the risks involved, investors can review Grafton's filings on SEDAR+.