Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) 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, if completed, would bolster Grafton's exploration portfolio in the country and complement its existing land holdings.
Management believes the projects exhibit attractive geological characteristics and offer potential operational and exploration synergies with nearby properties already held by the company. Grafton considers the broader district highly prospective and expects that consolidating strategically located concessions could enhance future exploration planning and regional-scale targeting opportunities.
The parties intend to negotiate and execute a definitive agreement for the acquisition, subject to satisfactory tax, corporate, and securities law advice for both companies. Completion of the transaction remains contingent on several conditions, including the completion of due diligence, negotiation of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including approval from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation to complete the acquisition, 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.”
Further details will be disclosed as material developments occur, in accordance with applicable securities laws and CSE policies. Newmont is an arm's length party to Grafton. The CSE has not passed upon the merits of the matters referenced and has neither approved nor disapproved the contents of this news release.
This announcement is significant as it signals Grafton's strategic expansion in Chile's mining sector, potentially creating a district-scale position that could attract further investment and development. The involvement of Newmont, a major mining company, underscores the prospectivity of the projects. Investors can find more information in Grafton's filings at www.sedarplus.ca.
