Grafton Resources Enters into Definitive Option Agreement to Acquire 100% of the Alicahue Copper-Gold Project in Chile

Core Viewpoint - Grafton Resources has entered into a definitive option agreement to acquire a 100% interest in the Alicahue Copper-Gold Project in Chile, marking a strategic move to build a high-value portfolio in a favorable mining jurisdiction [1][2]. Agreement Details - The option agreement grants Grafton Resources an exclusive option to acquire the Alicahue project, which spans 3,500 hectares at an average altitude of 1,700 meters, located 140 km from Santiago and 67 km from the coast [1]. - The agreement includes a structured payment plan over five years, with cash and share considerations totaling US$1,000 at signing, US$74,000 and US$75,000 at the first and second anniversaries, respectively [4][5]. - Grafton is required to incur US$4,000,000 in exploration expenditures over the first four years, with a minimum of US$500,000 per year [5]. Financial Obligations - Upon successful completion of exploration commitments, Grafton can exercise the option by making a payment of US$3,000,000 [5]. - The vendor will retain a 2.0% net smelter returns (NSR) royalty, with Grafton having the option to repurchase half of the NSR for US$5,000,000 [5]. Exploration Potential - The Alicahue project is situated in a metallogenic belt known for large porphyry deposits, indicating significant exploration potential for copper and gold [2]. - Ongoing mapping and sampling will be complemented by an airborne MMT geophysical survey planned for early 2026 [2]. Share Issuance and Finder's Fee - Grafton has issued 312,955 common shares as part of the signing payment, valued at C$0.44 per share [6]. - A finder's fee of 7% on the total value of the option will result in the issuance of 1,450,400 common shares, with the first 500,000 shares issued upon signing [7].