Golden Arrow Completes Sale of Copper Assets at San Pietro Project

Rhea-AI Summary

Golden Arrow Resources (OTCQB: GARWF) has completed the previously announced sale of its copper assets at the San Pietro project in Chile to Capstone Copper and a Capstone subsidiary, following approval by disinterested shareholders on August 21, 2026.

According to Golden Arrow, joint venture company New Golden Exploration Chile SpA, 75.019% indirectly owned by Golden Arrow and 24.981% by Sociedad de Servicios Andinos SPA, received 2,200,012 Capstone common shares, valued at approximately US$25 million, as consideration. The value was based on Capstone’s 10‑day volume‑weighted average closing price and a Bank of Canada exchange rate prior to closing. Approximate transaction costs and taxes are expected to be $6,550,000, to be deducted from this consideration.

Golden Arrow subsidiary New Golden Explorations Atlantida received 1,666,914 Capstone shares, with 165,042 shares withheld for Chilean taxes and 66,000 shares applied to an advisory fee. Sociedad de Servicios Andinos SPA received 533,098 Capstone shares. Southern Cone Partners was paid a US$750,000 advisory fee, settled through the 66,000 Capstone shares. The company states the deal strengthens its treasury to fund exploration programs in Chile and Argentina, including planning the first drill program at the Atakama gold project.

Positive

• US$25,000,000 in Capstone shares received as consideration for Copper Assets
• Shareholder approval by disinterested shareholders on August 21, 2026
• 2,200,012 Capstone shares issued to New Golden Exploration Chile SpA
• Golden Arrow subsidiary allocated 1,666,914 Capstone shares
• Strengthened treasury to fund exploration in Chile and Argentina
• Supports planning of first drill program at Atakama gold project this autumn

Negative

• Estimated transaction costs and taxes of approximately $6,550,000
• Advisory fee of US$750,000 paid via 66,000 Capstone shares

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Vancouver, British Columbia--(Newsfile Corp. - August 31, 2026) - Golden Arrow Resources Corporation (TSXV: GRG) (FSE: G6A) (OTCQB: GARWF), ("Golden Arrow" or the "Company") is pleased to announce that the Company has successfully completed the transaction announced on June 23, 2026, and has sold copper assets at the San Pietro Project ("Copper Assets") to Capstone Copper Corp. ("Capstone") and its wholly-owned subsidiary (the "Transaction"). The Transaction was approved by disinterested shareholders of the Company on August 21, 2026.

The full details of the Transaction were set out in our news release dated June 23, 2026. As consideration for the sale of the Copper Assets, New Golden Exploration Chile SpA ("NGE"), a joint venture indirectly owned by Golden Arrow (75.019%) and its joint venture partner, Sociedad de Servicios Andinos SPA (24.981%), received 2,200,012 common shares of Capstone (the "Capstone Shares") for a value of approximately US$25,000,000 (the "Consideration), calculated using the volume-weighted average closing price of Capstone's common shares for the 10 trading days ending two business days prior to closing, calculated on the Bank of Canada exchange rate two business days prior to closing. The approximate transaction costs and taxes payable for the Transaction are expected to be $6,550,000, with such fees being deducted from the Consideration received. New Golden Explorations Atlantida Ltd., a Golden Arrow subsidiary, received 1,666,914 Capstone Shares but had 165,042 Capstone Shares withheld for taxes payable in Chile, and 66,000 Capstone Shares deducted for the Advisory Fee (as defined below). Sociedad de Servicios Andinos SPA received 533,098 Capstone Shares.

"We are pleased to complete this transaction to unlock value from the San Pietro project. We now have a solid treasury that allows us to immediately expand our exploration efforts in Chile and Argentina, including planning the first drill program at our Atakama gold project this autumn. This closing marks a new chapter for the Company, and we look forward to building on this momentum to make our next discovery and deliver additional value to our shareholders," stated Nikolaos Cacos, Golden Arrow President & CEO.

As compensation for the services provided by Southern Cone Partners ("SCP") in connection with the Transaction, the Company paid a transaction fee equal to US$750,000 (the "Advisory Fee"), to SCP. The Advisory Fee was satisfied through the issuance of 66,000 Capstone Shares, which were deducted from the Consideration received by NGE. The entire Transaction was arm's length and no other finder's fees were paid.

About Golden Arrow:

Golden Arrow is a mineral 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 a portfolio of projects in Chile and Argentina. The Company is an affiliated company of the Grosso Group, a resource focused management organization that provides operational support to its affiliated companies as they advance quality resource projects.

ON BEHALF OF THE BOARD
"Nikolaos Cacos"
Mr. Nikolaos Cacos,
President and CEO

For further information, please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) 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: Golden Arrow's plans for, and the future prospects of, its mineral properties; the approximate transaction costs and taxes payable for the Transaction; and the Company's business strategy, plans and outlooks and the future financial or operating performance of the Company 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 associated with technical difficulties in connection with exploration 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. 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 forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update or revise any forward-looking statements except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312093

FAQ

What did Golden Arrow Resources (OTCQB: GARWF) receive for selling the San Pietro copper assets in August 2026?

Golden Arrow received 2,200,012 Capstone Copper common shares valued at about US$25 million. According to Golden Arrow, the valuation used Capstone’s 10‑day volume‑weighted average closing price and a Bank of Canada exchange rate before closing.

How are the Capstone Copper shares from the San Pietro transaction allocated between Golden Arrow and its partner?

New Golden Exploration Chile SpA received 2,200,012 Capstone shares, indirectly 75.019% owned by Golden Arrow and 24.981% by Sociedad de Servicios Andinos SPA. According to Golden Arrow, its subsidiary received 1,666,914 shares and Andinos SPA received 533,098 shares.

What transaction costs and taxes will Golden Arrow (GARWF) pay on the San Pietro copper asset sale?

Golden Arrow expects approximate transaction costs and taxes of $6,550,000 related to the sale. According to Golden Arrow, these fees will be deducted from the consideration of 2,200,012 Capstone shares received by New Golden Exploration Chile SpA.

How was the advisory fee structured in Golden Arrow’s August 2026 San Pietro transaction with Capstone Copper?

Southern Cone Partners received an advisory fee of US$750,000 for services on the transaction. According to Golden Arrow, this fee was satisfied through the issuance of 66,000 Capstone shares, deducted from the consideration allocated to New Golden Explorations Atlantida.

How will the San Pietro copper asset sale impact Golden Arrow Resources’ exploration plans in Chile and Argentina?

The Capstone share consideration is expected to provide a stronger treasury for Golden Arrow’s exploration programs. According to Golden Arrow, the proceeds will help immediately expand work in Chile and Argentina, including planning the first drill program at the Atakama gold project.

When did shareholders approve Golden Arrow Resources’ sale of the San Pietro copper assets to Capstone Copper?

Disinterested shareholders of Golden Arrow approved the San Pietro copper asset sale on August 21, 2026. According to Golden Arrow, completion of the arm’s-length transaction followed this approval and the deal was originally announced on June 23, 2026.

Were any Capstone Copper shares from the Golden Arrow San Pietro deal withheld for Chilean taxes?

Yes. Of the 1,666,914 Capstone shares allocated to New Golden Explorations Atlantida, 165,042 shares were withheld for taxes payable in Chile. According to Golden Arrow, these withheld shares address the Chilean tax obligations tied to the transaction.