VANCOUVER - Golden Arrow Resources Corporation (TSXV: GRG) (FSE: G6A) (OTCQB: GARWF), a mining exploration firm, has announced an option agreement with Sociedad de Servicios Andinos SpA (SSA), granting SSA the option to acquire a 25% stake in New Golden Explorations Chile SpA (NGE), a fully owned subsidiary. The deal, fully executed on January 9, 2024, mandates SSA to contribute $5 million in cash and services towards the development of the San Pietro iron oxide-copper-gold-cobalt project in Chile.
To fulfill the agreement, SSA will provide $2 million in cash through six bimonthly installments starting February 1, 2024, and $3 million worth of drilling and heavy machinery services by July 2025. This partnership provides Golden Arrow with significant non-dilutive financing, as emphasized by Joseph Grosso, Chairman, CEO, and President of Golden Arrow, who expressed satisfaction with the arrangement in a difficult market.
The San Pietro Project, where NGE holds a 100% interest, spans nearly 18,500 hectares near Copiapo and is surrounded by established mining operations. Despite its proximity to other mining projects, there is no assurance of similar prospects at San Pietro. The project has multiple targets with strong mineralization, and in 2023, Golden Arrow completed approximately 4,000 meters of diamond drilling. The company is now preparing for an aggressive exploration and drilling program to support a NI 43-101 mineral resource estimate expected by year-end.
SSA, based in Copiapó, is involved in diamond drilling and logistics, and has ties with AGV GROUP, a leading mining services company in Argentina. Golden Arrow, part of the Grosso Group, is known for its exploration success in Argentina and is now focusing on its flagship San Pietro project in Chile.
The information in this article is based on a press release statement.
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