Earlier estimates associated with the Andacollo Oro project include 2.02moz of gold in the measured and indicated categories.
The AOG project benefits from existing mining permits, land titles, water rights, and significant onsite infrastructure. It is situated adjacent to Teck Resources’ Carmen de Andacollo copper mine. Historical estimates indicate 2.02 million ounces of gold in measured and indicated categories and 5.06 million ounces in the inferred category.
Wealth Minerals CEO Henk van Alphen stated: “The chance to acquire the AOG project is an opportunity management believes is the right choice for shareholders. Gold, an asset class that has been around for millennia, is now ‘new’ to the capital markets as investors increasingly worry about governments’ monetary and fiscal policies globally. I see no reason to expect the drivers of this worry to change, and I expect gold’s favour amongst investors to continue.”
The acquisition, pending approval from the TSX Venture Exchange, will proceed through a share purchase and sale agreement, with Wealth Minerals or a subsidiary acquiring full ownership of a private Chilean company. This company is finalizing its acquisition of the AOG project, involving deferred payments totaling $30 million, which Wealth will assume. Up to $7 million may be paid in shares over 48 months, with $250,000 already paid.
To support the acquisition, Wealth Minerals has launched a non-brokered private placement of at least 41.7 million units at $0.12 per unit, aiming to raise a minimum of $5 million. The funds will support acquisition costs, exploration, drilling, permitting, and $1 million for general corporate purposes.
Additionally, Wealth Minerals appointed Chad Williams, founder and chairman of Red Cloud Mining Capital, as a strategic advisor to guide the company’s efforts. The AOG project positions Wealth Minerals to capitalize on the growing interest in gold while contributing to economic development in Coquimbo through mining and infrastructure activities.
