Wealth Minerals Signs Agreement to Acquire Chilean Gold Project with Historic Production
Wealth Minerals has entered into a binding letter of agreement to acquire a 100% royalty-free interest in the Andacollo Oro gold project (AOG) in Chile’s Coquimbo province, a site with significant historical production and existing infrastructure.
The project, located 60km from the port of Coquimbo and 480km north of Santiago, previously operated as an open-pit heap leach facility from 1995 to 2018, pr
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Wealth Minerals Signs Agreement to Acquire Chilean Gold Project with Historic Production
Wealth Minerals has entered into a binding letter of agreement to acquire a 100% royalty-free interest in the Andacollo Oro gold project (AOG) in Chile’s Coquimbo province, a site with significant historical production and existing infrastructure.
The project, located 60km from the port of Coquimbo and 480km north of Santiago, previously operated as an open-pit heap leach facility from 1995 to 2018, producing 1.12 million ounces of gold before operations were suspended due to declining gold prices. At its peak in 1999, the mine achieved an annual production of 135,000 ounces with a daily processing capacity of 20,000 tonnes.
According to historical estimates, the AOG project contains substantial gold resources, including 2.02 million ounces in the measured and indicated categories and an additional 5.06 million ounces in the inferred category. These resources position the project as a potentially significant asset in Chile’s mining sector.
“The chance to acquire the AOG project is an opportunity management believes is the right choice for shareholders,” said Wealth Minerals CEO Henk van Alphen. “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 strategic acquisition comes amid rising gold prices and renewed investor interest in precious metals as a hedge against inflation and economic uncertainty. Gold has seen significant price appreciation over the past year, making previously suspended operations potentially viable again.
The transaction structure involves Wealth Minerals or one of its subsidiaries acquiring a private Chilean company that will hold the project rights. This underlying transaction requires the private company to complete its acquisition of the 100% royalty-free interest in the AOG project. The deal includes deferred purchase payments totaling $30 million, which Wealth will assume responsibility for once the transaction is complete. Of this amount, up to $7 million may be paid in shares over a 48-month period, with $250,000 already paid.
The project offers several strategic advantages, including existing permits covering mining rights, land title, and water access. The site also features significant onsite infrastructure, potentially reducing the capital expenditure required to restart operations. Its location adjacent to Teck Resource’s Carmen de Andacollo copper mine may provide additional operational synergies.
To finance the acquisition and future development, Wealth Minerals has launched a non-brokered private placement aiming to raise a minimum of $5 million through the issuance of at least 41.7 million units priced at $0.12 per unit. The funds will support acquisition costs, exploration and development work, including drilling and permitting, with $1 million allocated for general corporate purposes.
The transaction remains subject to approval from the TSX Venture Exchange, where Wealth Minerals is listed.
In a related development, the company announced the appointment of Chad Williams as strategic advisor. Williams, the founder and chairman of Red Cloud Mining Capital, brings significant mining finance expertise to Wealth Minerals as it advances the AOG project.
The acquisition represents Wealth Minerals’ strategic pivot toward precious metals, diversifying its portfolio which has previously focused on lithium assets in Chile. This move aligns with broader industry trends as mining companies seek to balance their exposure across different commodities in response to evolving market conditions and investment preferences.
If successfully developed, the revitalized Andacollo Oro project could contribute significantly to Chile’s gold production, which has historically been overshadowed by the country’s dominant copper industry.
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