(Golden Arrow, 12.Jan.2024) — Golden Arrow Resources Corporation (TSXV: GRG) (FSE: G6A) (OTCQB: GARWF) announced that New Golden Explorations Chile SpA (NGE), a wholly-owned subsidiary of the company, has entered into an option agreement (fully executed 9 Jan. 2024) with Sociedad de Servicios Andinos SpA (SSA). Under the option agreement, NGE has granted SSA the option to subscribe for 333 shares in the capital of NGE, 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 1 Feb. 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 Jul. 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 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 13 Jun., 27 Jun. and 12 Jul.. 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.