Golden Arrow Announces Exercise of Option at the San Pietro IOCG Project
Rhea-AI Summary
Golden Arrow Resources announces that Sociedad de Servicios Andinos (SSA) has exercised its option to acquire a 25% stake in New Golden Explorations Chile (NGE). The transaction involves a US$5 million contribution, comprising US$2 million in cash and US$3 million in drilling and machinery services.
The deal centers on the San Pietro iron oxide-copper-gold-cobalt project in Chile, which NGE fully owns. Located 100 kilometers north of Copiapo, the project spans 18,500 hectares and is strategically positioned between Capstone Copper's Manto Verde Mine and Santo Domingo Project. This placement puts San Pietro in a potential new copper-cobalt region within an active mining district known for major IOCG deposits in Chile.
SSA, based in Copiapó, specializes in diamond drilling, heavy equipment services, and logistics. The company's main shareholder is also the majority owner of AGV GROUP, which has a decade-long partnership with Grosso Group companies in Argentina, including Golden Arrow.
Positive
- SSA contributes US$5M to acquire 25% stake in NGE, including US$2M in cash
- Strategic partnership with experienced mining services company SSA
- Project location adjacent to major mining operations (Manto Verde Mine and Santo Domingo Project)
- Large land position of 18,500 hectares in established mining district
- US$3M worth of drilling services and equipment secured through SSA deal
Negative
- No current mineral resource estimates or production metrics provided
- Project is still in early exploration phase with no assured prospects
News Market Reaction – GARWF
In the trading session that priced this news, GARWF declined 16.04%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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TSX Venture Exchange (TSX-V): GRG
Frankfurt Stock Exchange (FSE): G6A
OTCQB Venture Market (OTCQB): GARWF
To exercise the Option, SSA contributed
US in cash;$2,000,000 - performing drilling services, heavy machinery services, truck rental, as well as 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 ; and$3,000,000 - issuing to NGE a promissory note for the sum of
$18,078.97
SSA is arm's length to the Company and no finders' fees were payable for this transaction.
San Pietro Project
NGE holds a
About Sociedad de Servicios Andinos SpA:
SSA is a company based in Copiapó whose main activities are Diamond drilling, Heavy Equipment Services and Logistics. SSA's main shareholder is also the majority shareholder of AGV GROUP, a leading mining services company in
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
The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Mr. Joseph Grosso,
Executive Chairman, President and CEO
Neither TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in policies of the TSXV) 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 Company's business strategy, plans and outlooks; the future financial or operating performance of the Company; future exploration and operating plans 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: 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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SOURCE Golden Arrow Resources Corporation