#Canada #Vancouver #Golden Arrow #Mogote Project #Caballos Project

Golden Arrow Resources Paves the Way for Future Growth in Argentina's Mining Sector

Golden Arrow Resources Corporation (TSXV: GRG) has recently outlined significant developments in its joint ventures and exploration strategies, particularly focusing on the Mogote Copper-Gold project located in San Juan Province, Argentina. In a new agreement with Mogotes Metals Inc., the company has reached an amendment granting Mogotes Metals the option to fully acquire a 100% stake in the Mogote project for CAD $1 million. This option includes a combination of cash and equity, alongside a 1.5% net smelter return royalty based on future production.

This strategic move not only monetizes the asset for immediate capital but also positions Golden Arrow for long-term benefits through retained interests and royalties.

Nikolaos Cacos, Vice President of Corporate Development at Golden Arrow, commented on the significance of the agreement, emphasizing their aim to enhance both short-term value and future returns. The generated cash will facilitate further exploration in other promising projects, especially the San Pietro copper-gold-iron-cobalt project in Chile, where an initial mineral resource estimate is underway. Cacos expressed excitement for the prospective outcomes that lie ahead, particularly with Mogotes Metals continuing exploration in a mineral-rich area adjacent to the Filo del Sol copper-gold-silver trend.

In parallel to the developments at Mogote, Golden Arrow is pleased to report that Hanaq Argentina S.A. has secured the necessary permits and initiated diamond drilling at the Caballos Copper-Gold project, also situated in Argentina’s La Rioja Province. This exploration marks the first time targeted drill testing has occurred at Caballos, a site believed to hold high potential due to its positioning at the intersection of notable geological belts.

The initial drilling program will focus on three holes extending roughly 1,000 meters, targeting a porphyry copper-gold and epithermal gold-silver district near Lundin Mining's Josemaria Project. Brian McEwen, the company's Vice President of Exploration and Development, highlighted the timely advance in permitting and drilling activities at Caballos while noting the positive shift in support for exploration activities from local authorities.

McEwen articulated optimism regarding the company’s strategic decisions to option non-core assets like Mogote and Caballos, believing that such initiatives are beginning to yield noteworthy results. He anticipates a fruitful year ahead, driven by both partnerships in joint ventures and the company’s core exploration efforts.

Key Details of the Amending Agreement with Mogotes Metals

To actualize the amended option, Mogotes Metals will provide a cash payment of $550,000 upon receiving TSX Venture Exchange's conditional approval of the agreement. Additionally, they will make a private placement investment of $450,000 in Golden Arrow, resulting in equity growth for the Company.

Mogotes Metals is committed to issuing common shares to Golden Arrow, significantly adding to its equity position. The established agreement also includes a lock-up provision for the shares to protect equity value during development phases, promoting coordinated growth objectives between the two entities.

Overall, Golden Arrow’s latest strategic maneuvers reflect a proficient blend of immediate capital creation and long-term growth potential. The upcoming drilling activities at Caballos and developments at the Mogote project underscore the company's commitment to harnessing the full potential of Argentina's mining landscape. Through strong partnerships and an extensive portfolio of properties, Golden Arrow is poised for continued success in the dynamic mining sector.