Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) 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 May 20, 2026. The proposed acquisition would enhance Grafton's existing regional land position and is expected to provide operational and exploration synergies with nearby properties.
Management believes the projects demonstrate attractive geological characteristics and that consolidating strategically located concessions could improve future exploration planning and regional-scale targeting. The broader district is considered highly prospective, and the acquisition aligns with Grafton's strategy of building a district-scale position in Chile's mineral belts.
The parties plan to negotiate a definitive agreement, subject to satisfactory tax, corporate, and securities law advice. Completion remains conditional on due diligence, execution of definitive documentation, and approvals from the Canadian Securities Exchange (CSE) and other regulatory bodies. The LOI is non-binding except for customary provisions.
Campbell Smyth, CEO 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.'
Newmont is an arm's length party to Grafton. Further details will be disclosed as developments occur, in accordance with securities laws and CSE policies.
This news release contains forward-looking information, including statements about the proposed acquisition, potential mineralization, and exploration plans. Such statements involve risks and uncertainties that could cause actual results to differ, including completion risks, exploration hazards, regulatory approvals, and market conditions. Readers should review the company's filings on SEDAR+ for a full discussion of risks.
