Wealth Minerals Moves to Acquire Andacollo Oro Gold Project in Chile

Acquisition Proposal Sees Wealth Minerals Target Andacollo Oro Gold Project

Wealth Minerals has signed a binding letter of agreement to acquire an indirect 100% royalty-free interest in the Andacollo Oro (AOG) gold project. The project is located in Coquimbo, Chile. The AOG site produced 1.12 million ounces of gold between 1995 and 2018 through open-pit heap leach operations. Peak production reached 135,000 ounces per year with a throughput of 20,000 tonnes per day. The site already holds key permits, infrastructure, and lies close to Teck’s Carmen de Andacollo copper mine. Wealth plans to close the deal via a share purchase agreement pending TSX Venture Exchange approval. Deferred payments total US$30 million, with up to US$7 million payable in shares over 48 months. The company also launched a non-brokered private placement to raise at least 41.7 million units at CA$0.12 each. The funds will support acquisition, exploration, and development. Historically, the AOG project is linked to 2.02 million ounces of gold in measured and indicated categories, plus 5.06 million ounces inferred. However, these estimates are historical and not classified under current standards. This transaction marks Wealth’s expansion beyond lithium into precious metals.

Strategic Significance and Potential Challenges

The Andacollo Oro project sits 60 km from the port of Coquimbo and 480 km north of Santiago. It offers good logistical access in Chile’s mining heartland. Its proximity to the Carmen de Andacollo copper mine may create synergies in infrastructure and regional leverage. However, Wealth faces risks related to permitting, reclassification of historical resources, financing, and integrating gold operations. The company views this as a strategic move. Gold attracts investors worried about monetary policy changes. CEO Henk van Alphen calls gold “new” again in capital markets. If completed, the deal could diversify Wealth’s projects beyond lithium and strengthen its Chile footprint. Revalidating historical resources will be key to unlocking value in AOG.

SuperMetalPrice Commentary:

Wealth Minerals’ acquisition of the Andacollo Oro gold project signals a strategic pivot to balance its lithium assets with precious metals exposure. The project’s existing infrastructure and permits reduce initial risks. However, success depends on resource validation and financing. If Wealth executes well, Andacollo Oro could become a cornerstone gold asset. This move aligns with growing global interest in gold amid economic uncertainty. Investors should watch due diligence, resource updates, and financing progress closely.