Wealth Minerals Ltd. (TSXV: WML, OTCQB: WMLLF, SSE: WMLCL, FSE: EJZN) has made headlines with its recent announcement regarding a significant acquisition in the mining sector. On September 24, 2025, the company entered into a binding letter agreement to acquire a 100% royalty-free interest in the Andacollo Oro Gold Project (AOG Project), located in Chile. This strategic move is poised to enhance Wealth’s portfolio and create substantial value for its shareholders.
Overview of the Andacollo Oro Gold Project
The AOG Project is situated in the Coquimbo region of Chile, approximately 60 kilometers from the Coquimbo port and 480 kilometers north of Santiago. Historically, the project has been a prolific gold producer, yielding a total of 1.12 million ounces of gold from 1995 to 2018. The mine was operational as an open-pit heap leach operation, with a peak production rate of 135,000 ounces in 1999.
Historical Resource Estimates
The AOG Project boasts impressive historical estimates, including:
Measured and Indicated Resources: 2.02 million ounces of gold across 130 million tonnes at 0.48 grams per tonne.
Inferred Resources: 5.06 million ounces of gold across 358 million tonnes at 0.45 grams per tonne.
Proven and Probable Reserves: 1.16 million ounces of gold within 59.3 million tonnes at 0.61 grams per tonne.
These estimates highlight the project’s potential, although it is important to note that a qualified person has not yet classified these estimates as current mineral resources or reserves.
Strategic Rationale Behind the Acquisition
Henk van Alphen, CEO of Wealth Minerals, emphasized the strategic importance of acquiring the AOG Project. He stated, “The chance to acquire the AOG Project is an opportunity management believes is the right choice for shareholders.” With growing concerns about global monetary and fiscal policies, gold remains a sought-after asset class. Van Alphen believes that the acquisition aligns with Wealth’s commitment to enhancing shareholder value while continuing to advance its lithium project portfolio.
Commitment to Sustainable Development
Wealth Minerals is not only focused on gold but is also dedicated to sustainable practices. The company has engaged with the Quechua Indigenous Community of Ollagüe to develop the Kuska lithium project, demonstrating its commitment to responsible mining practices in Chile. The recent inclusion of the Salar de Ollagüe in a simplified procedure for lithium operating contracts further underscores Wealth’s proactive approach to stakeholder engagement.
Financial Aspects of the Transaction
The acquisition will be executed through a share purchase and sale transaction, with Wealth acquiring a 100% ownership interest in a private Chilean company (the “Target”). The purchase price is set at 12.5 million common shares of Wealth, subject to adjustments for dilution prior to closing. Additionally, Wealth has made a cash payment of $350,000 to the Target for a 30-day exclusivity period to conduct due diligence.
Deferred Purchase Payments
The transaction includes deferred purchase payments totaling $30 million, with a structured payment plan over 48 months. This plan allows Wealth to manage its cash flow while ensuring the acquisition’s successful completion.
Private Placement Offering
To finance the acquisition and associated costs, Wealth has announced a non-brokered private placement offering of a minimum of 41,666,666 units at a subscription price of $0.12 per unit, aiming for gross proceeds of at least $5 million. Each unit consists of one common share and one-half of a common share purchase warrant, with the potential for accelerated expiry based on share performance.
Use of Proceeds
The proceeds from the offering will primarily fund the acquisition, exploration, and development costs of the AOG Project, including drilling and permitting work. A portion will also be allocated for general working capital and corporate purposes.
Share Consolidation
In conjunction with the acquisition and private placement, Wealth plans to undergo a consolidation of its issued and outstanding common shares. This consolidation aims to position the company favorably for attracting capital to advance its projects. The anticipated consolidation ratio is one post-consolidation share for every seven pre-consolidation shares.
Leadership and Expertise
Wealth Minerals has also appointed Chad Williams as a strategic advisor. With extensive experience in the mining sector, including his role as the former CEO of Victoria Gold, Williams brings valuable insights to the company as it navigates this pivotal phase.
Conclusion
Wealth Minerals’ acquisition of the Andacollo Oro Gold Project marks a significant milestone in the company’s growth strategy. By diversifying its asset base to include precious metals, Wealth is positioning itself to capitalize on the evolving dynamics of the mining industry. As the company continues to advance its lithium projects and engage with stakeholders, the future looks promising for Wealth Minerals and its shareholders.
For more information about Wealth Minerals and its projects, visit Wealth Minerals.
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