Golden Arrow Announces US$5 Million Option Agreement to Support Resource Delineation Program at the San Pietro IOCG Project
Golden Arrow Announces US$5 Million Option Agreement to Support
Resource Delineation Program at the San Pietro IOCG Project
TSX Venture Exchange (TSX-V):
GRG
Frankfurt Stock Exchange (FSE):
G6A
OTCQB Venture Market (OTCQB):
GARWF
VANCOUVER, BC
,
Jan. 12, 2024
/CNW/ -
Golden Arrow Resources Corporation
(TSXV: GRG) (FSE: G6A) (OTCQB: GARWF),
("Golden Arrow"
or the
"Company")
is pleased to announce that New Golden Explorations Chile SpA ("
NGE
"), a wholly-owned subsidiary of the Company, has entered into an option
agreement (fully executed
January 9, 2024
) (the "
Option Agreement
") with Sociedad de Servicios Andinos SpA ("
SSA
"). Under the Option Agreement, NGE has
granted SSA the option (the "
Option
") to subscribe for 333 shares in the capital of NGE (each, a "
Share
"), equivalent to approximately 25% of the issued and
outstanding Shares upon exercise of the Option, subject to the terms and conditions of the Option Agreement. The Shares are not convertible or otherwise
exchangeable for common shares of the Company. SSA is non-arm's length to the Company. No finders' fees are payable for this transaction.
To exercise the Option, SSA must contribute
US$5,000,000
(in the equivalent amount of Chilean pesos), as follows:
(i)
US$2,000,000
in cash, through six bimonthly installments of
US$333,333
commencing on
February 1, 2024
, and
(ii) performing drilling services, heavy machinery services, truck rental, as well as any other goods or necessary services for the development of field
activities at the San Pietro Project (as described below) with an aggregate value of
US$3,000,000
by
July 2025
.
Joseph Grosso
, Chairman, CEO and President of
Golden Arrow
commented, "
We are very pleased with this arrangement with SSA as this deal represents the
equivalent of approximately
7 million Canadian dollars
of non-dilutive financing for
Golden Arrow
, in a difficult market. The investment will allow us to complete
an aggressive exploration and drilling program to continue evaluating San Pietro's many targets, and in support of our first NI 43-101 mineral resource estimate
for the project which we are aiming to complete by the end of year
."
San Pietro Project
NGE holds a 100% interest in the Company's San Pietro iron oxide-copper-gold-cobalt project in
Chile
(the "
San Pietro Project
"). The San Pietro Project covers
nearly 18,500 hectares, approximately 100 kilometres north of Copiapo. Situated between and adjacent to Capstone Copper's Manto Verde Mine property and
Santo Domingo Project, the San Pietro Project is in the centre of a potential new copper-cobalt region within an active, well developed mining district that is home
to all the major iron oxide-copper-gold ("
IOCG
") deposits in
Chile
. The proximity of the San Pietro Project to other mining projects in the area does not provide any
assurances with respect to the prospects at the San Pietro Project.
The San Pietro Project hosts multiple targets with strong IOCG+cobalt mineralization. In 2023 the Company completed approximately 4000 metres of diamond
drilling in 13 holes to add to the database of ~34,000 metres of historic drilling at San Pietro. All targets tested reported strongly mineralized intervals as reported
in Company news releases on
June 13
,
June 27
and
July 12
. With completion of this arrangement with SSA, the Company is fine-tuning its geological modeling to
finalize the drill spacing and program required to support a NI 43-101 mineral resource estimate at San Pietro. The full 2024 exploration and resource delineation
drilling program will be announced in the coming weeks.
About Sociedad de Servicios Andinos SpA:
SSA is a company based in Copiapó whose main activities are Diamond drilling, Heavy Equipment Services and Logistics. They are currently carrying out drilling
and water supply with cistern trucks at Filo del Sol project, for Lundin Group.
SSA's main shareholder is also the majority shareholder of AGV GROUP, a leading mining services company in
Argentina
, with a ten year partnership with
Grosso Group companies in
Argentina
, including
Golden Arrow
.
About
Golden Arrow
:
Golden Arrow Resources Corporation is a mining exploration company with a successful track record of creating value by making precious and base metal
discoveries and advancing them into exceptional deposits.
Golden Arrow
is actively exploring its flagship property, the advanced San Pietro iron oxide-copper-gold-cobalt project in
Chile
, and a portfolio that includes nearly
125,000 hectares of prospective properties in
Argentina
.
The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in
Argentina
since 1993.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_____________________________
Mr.
Joseph Grosso
,
Executive Chairman, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent
risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects
or anticipates will or may occur in the future, including, without limitation, statements about the proceeds from the Option transaction and the use of such
proceeds; the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance
of the Company; future exploration and operating plans (including the 2024 exploration and resource delineation drilling program); the fine-tuning of the
Company's geological modeling; and the completion of a NI 43-101 mineral resource estimate (and the timing thereof) are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those
discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations
include, among other things: the impact of COVID-19; risks and uncertainties related to the ability to obtain, amend, or maintain licenses, permits, or surface
rights; risks associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or mining results
will not be consistent with the Company's expectations.
Actual results may differ materially from those currently anticipated in such statements. The proximity of
the San Pietro Project to other mining projects in the area does not provide any assurances with respect to the prospects at the San Pietro Project. Readers are
encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The
Company undertakes no obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.
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For further information:
Corporate Communications, Tel: 1-604-687-1828, Toll-Free: 1-800-901-0058, Email: [email protected]
CO: Golden Arrow Resources Corporation
CNW 07:00e 12-JAN-24