Golden Arrow unveils US$5 million IOCG option deal
Golden Arrow Resources Corp. [GRG-TSXV, OTCQB-GARWF, G6A-FSE] has announced a US$5.0 million option agreement that will support resource delineation at its San Pietro iron oxide-copper-gold-cobalt (IOCG) project in Chile.
Golden Arrow said its New Golden Explorations Chile SpA (NGE) subsidiary has entered into an option agreement with Sociedad de Servicios Andinos SpA (SSA) which has been granted the option to subscribe for 333 shares in the capital of NGE, equivalent to 25% of the issued and outstanding shares of NGE.
To exercise the option, SSA must contribute US$5.0 million as follows:
- US$2 million in cash, through six bimonthly installments of US333,333 commencing on February 1, 2024.
- Perform drilling services, heavy machinery services, truck rental, as well as other goods or necessary services for the development of field activities at San Pietro with an aggregate value of US$3.0 million by July, 2025.
“We are very pleased with this arrangement with SSA as the deal represents the equivalent of approximately $7.0 million Canadian dollars of non-dilutive financing for Golden Arrow, in a difficult market,’’ said Golden Arrow Chairman and CEO Joseph Grosso.
Golden Arrow shares advanced on the news, rising 8.3% or $0.005 to $0.065. The shares trade in a 52-week range of 15 cents and $0.045.
“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 the year.
Golden Arrow is a mining exploration company that is targeting gold and copper discoveries in a large South American project portfolio.
It includes 125,000 hectares of prospective properties in Argentina, high grade copper in Chile and a district-scale orogenic gold opportunity in Paraguay.
Golden Arrow’s exploration and development strategy is led by a highly experienced management team. Grosso has been active in Argentina since the country opened its mining sector to foreign investment in 1993.
SSA is a company based in Copiapo. Its main activities are diamond drilling, heavy equipment services and logistics. SSA’s main shareholder is also the majority shareholder of AGV Group, a leading services company in Argentina, with a 10-year partnership with Grosso Group companies in Argentina, including Golden Arrow.
NGE holds a 100% interest in the San Pietro project, which covers nearly 18,500 hectares, located approximately 100 kilometres north of Copiapo. Situated between and adjacent to Capstone Copper Corp.’s [CS-TSX] Manto Verde Mine property and Santo Domingo project, San Pietro is the centre of a potential new copper-cobalt region within an active well-developed mining district.
San Pietro hosts multiple targets with strong IOCG plus cobalt mineralization. In 2023, the company completed approximately 4,000 metres of drilling in 13 holes, adding to a database of 34,000 metres of historic drilling.