Grafton Resources Enters into Definitive Option Agreement to Acquire 100% of the Alicahue Copper-Gold Project in Chile
Executive Summary
- Grafton Resources entered a definitive option agreement to acquire 100 % of the 3,500‑ha Alicahue copper‑gold project in Chile.
- The option requires US$4 M of exploration spend over four years and an exercise payment of US$3 M; the vendor retains a 2 % NSR royalty with a repurchase right for US$5 M.
- Significant cash and share consideration payments were made at signing, plus a 7 % finder’s fee issued in common shares, all subject to hold periods.
Key Details
- Project: Alicahue Copper‑Gold Project, Valparaiso Region, Chile – 3,500 ha, average altitude 1,700 m, ~140 km from Santiago.
- Option Structure: 5‑year term; Years 1‑4 dedicated to exploration (minimum US$500k per year), Year 5 for technical report and option exercise.
- Exploration Commitment: US$4 M total (≥US$500k each of the first four years).
- Exercise Payment: US$3 M payable upon meeting the exploration spend commitment.
- Royalty Terms: Vendor retains 2 % NSR royalty; Grafton may repurchase 1 % of that royalty for US$5 M.
- Resource Payment: US$5.00 per tonne of copper‑equivalent metal (cut‑off 0.2 %) on measured, indicated or inferred resources at the time of a construction decision, per NI 43‑101.
Cash & Share Consideration Schedule
| Milestone | Cash Paid | Shares Issued (value) |
|---|---|---|
| Signing of Option Agreement | US$1,000 | 312,955 shares @ C$0.44 each (≈US$100k) |
| First Anniversary | US$74,000 | Shares equal to US$75,000 |
| Second Anniversary | US$75,000 | Shares equal to US$75,000 |
- Finder’s Fee: 1,450,400 common shares representing a 7 % fee on the total option value (deemed $0.50 per share).
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First tranche of 500,000 shares issued at signing; second tranche of 500,000 shares issuable after completion of maiden drill program; final tranche of 450,400 shares issuable upon exercise of the option.
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Hold Period: All cash‑share payments and finder’s shares subject to a four‑month + one‑day hold period under Canadian securities regulations.
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Correction Notice: Updated finder’s fee figures from the November 27 2025 private placement release – $137,784 cash paid and 275,568 non‑transferable warrants issued (exercise price $0.80, expiry Nov 27 2027).
Notable Quotes
“Completing the acquisition of Alicahue is the first step in building a high‑value portfolio of gold and copper projects that can give shareholders both momentum and leverage to this metals cycle.” – Campbell Smyth, Interim CEO & Chairman
“Alicahue offers Grafton a tremendous opportunity to explore several significant and newly‑identified copper and gold targets… the combination of geology and geochemistry points to the potential for a classic porphyry deposit.” – Merlin Marr‑Johnson, Technical Advisor