Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) has entered into a non-binding letter of intent with Newmont USA Limited to acquire two gold-focused exploration projects in Chile, the company announced on May 20, 2026. The proposed acquisition is expected to bolster Grafton's exploration portfolio in the region and complement its existing land position.
Management believes the projects demonstrate attractive geological characteristics and offer potential operational and exploration synergies with nearby properties currently held by the company. Grafton considers the broader district to be highly prospective and sees the consolidation of strategically located concessions as a way to enhance future exploration planning and regional-scale targeting opportunities.
The parties intend to negotiate a definitive agreement for the proposed acquisition, subject to satisfactory tax, corporate, and securities law advice. Completion remains conditional on due diligence, execution of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including approval from the Canadian Securities Exchange. The letter of intent does not create a binding obligation except for certain customary provisions.
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.”
Further details will be disclosed as material developments occur. Newmont is an arm's length party to the company. This announcement underscores Grafton's commitment to expanding its presence in Chile's mineral-rich regions and leveraging strategic partnerships to advance its exploration objectives.
