Golden Arrow Resources said it has finalized the sale of its San Pietro copper assets in Chile to Capstone Copper for approximately $25 million in shares.
The transaction, announced in June and approved by disinterested shareholders on Aug. 21, involved the transfer of Golden Arrow’s 75.019% stake in the San Pietro joint venture to Capstone. Sociedad de Servicios Andinos SPA retained the remaining 24.981%.
The consideration consisted of 2,200,012 Capstone common shares, calculated using a 10-day volume-weighted average closing price prior to closing. Total transaction costs and taxes, including a $750,000 advisory fee paid to Southern Cone Partners, amounted to $6.55 million, deducted from the proceeds.
Of the shares received, Golden Arrow’s subsidiary New Golden Explorations Atlantida Ltd. retained 165,042 shares for Chilean taxes and 66,000 shares for the advisory fee, while Sociedad de Servicios Andinos SPA received 533,098 shares. The remaining 1,435,870 shares were allocated to Golden Arrow.
Golden Arrow President and CEO Nikolaos Cacos said the company was pleased to complete the deal, which he described as a step to unlock value from the San Pietro project. The miner also plans to initiate a drill program at its Atakama gold project in Chile in the coming autumn.
