Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) announced on May 20, 2026, that it has entered into a non-binding letter of intent (LOI) with Newmont USA Limited to acquire two gold-focused exploration projects in Chile. The proposed acquisition aligns with Grafton's strategy of building a district-scale position in prospective mineral belts within the country.
Management believes the projects exhibit attractive geological characteristics and could offer operational and exploration synergies with Grafton's existing land holdings in the region. The company considers the broader district highly prospective and expects that consolidating strategically located concessions will enhance future exploration planning and regional-scale targeting.
The parties intend to negotiate a definitive agreement, subject to satisfactory tax, corporate, and securities law advice for both parties. Completion of the acquisition remains contingent on several conditions, including due diligence, execution of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation except for certain customary binding provisions.
Campbell Smyth, Chief Executive Officer of Grafton, commented: "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 material developments occur, in accordance with applicable securities laws and CSE policies. The CSE has not passed upon the merits of the matters referenced and has neither approved nor disapproved the contents of this news release.
Grafton Resources is a Canadian exploration company listed on the CSE, focused on the discovery and development of mineral assets in the Americas. The company is committed to responsible exploration, strong community partnerships, and generating shareholder value through disciplined project advancement.
Forward-looking statements in this release involve risks and uncertainties, including those related to the completion of the acquisition, exploration activities, and regulatory approvals. Actual results could differ materially. For more information, readers should review Grafton's filings available at www.sedarplus.ca.
