en.Wedoany.com Reported - Golden Arrow Resources announced the signing of a definitive agreement to sell certain mining claims in its San Pietro project in the Atacama region of Chile, involving the transfer of copper, gold, iron, and cobalt assets in exchange for Capstone Copper shares totaling $25 million. The move aims to strengthen the company's financial position while retaining exposure to the project's value through a stake in a diversified producer. According to the company, the transaction allows it to reallocate resources to higher-priority gold exploration targets within the same region.
As part of the deal, Golden Arrow will reduce its interest in approximately two-thirds of the original area of the San Pietro project, including related copper deposits, while retaining over 9,000 hectares of land containing gold targets recently identified by the technical team. The company stated that the resources obtained will be used to fund an expanded exploration program focused on these gold targets, which are considered high-potential in the current market context.
Golden Arrow Chairman and CEO Nikolaos Cacos, commenting on the transaction, emphasized that the agreement will provide the company with significant non-dilutive capital and immediate liquidity capital, the latter derived from a stake in a major diversified copper producer. In a separate statement, he explained the company's new strategic focus post-transaction: The deal enables the company to fully concentrate resources on the interesting gold targets discovered in San Pietro over the past year. Given that the gold market is showing genuine strength, the company believes now is the right time to allocate more capital to accelerate these targets and looks forward to a busy and productive remainder of 2026 to complete the transaction and pursue the next discovery.
The company stated that the transaction is structured as an arm's-length deal and has received support from the board of directors and relevant shareholders, who have signed voting support agreements. The deal includes the creation of a new corporate structure, with copper assets to be transferred to a new entity before the transaction's final closing. Golden Arrow emphasized that the company's financial position will improve post-transaction, gaining access to marketable securities and resources to drive its gold-focused exploration strategy. At the same time, the company will maintain indirect exposure to Capstone Copper's performance, thereby diversifying its portfolio while concentrating on high-potential exploration assets.
The agreement is subject to regulatory and shareholder approvals, with the transaction expected to close by the end of the third quarter of 2026, marking a new phase in the development strategy for the San Pietro project.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
