Latin Metals Inc. (“Latin Metals” or the “Company”) – (TSXV: LMS)(OTCQB: CTMID) announces that it has entered into an amending option agreement (the “Amended Agreement”) whereby the terms of the Company’s option to acquire the Esperanza Property (“Esperanza” or the “Property”) have been renegotiated.
Under the terms of the Amended Agreement, the cash payment schedule has been adjusted (Table 1) providing more favourable schedule of option terms for Latin Metals. Total cash payments remain at US$2,306,000, of which US$405,000 has been paid to date. The new terms provide that no additional payments are due until 15 June 20211.
“The Company is currently seeking to find a joint venture partner to fund exploration at Esperanza and we believe that these amended terms will be a positive development for any company considering entry into the Property.” stated Keith Henderson, Latin Metals President & CEO. “The Property hosts an outcropping copper-gold porphyry system, which has returned excellent drill results to date.”
Table 1: Amended Option Payment Schedule
Date | Cash (USD) | Value of Shares (USD) | ||
Effective Date | $80,000 (paid) | – | ||
15 December 2017 | $83,000 (paid) | – | ||
15 June 2018 | $45,000 (paid) | – | ||
20 September 2018 | $10,000 (paid) | – | ||
2 October 2018 | $10,000 (paid) | – | ||
30 October 2018 | $25,000 (paid) | – | ||
25 June 2019 | $150,000 (paid) | – | ||
15 June 20211 | $300,000 | – | ||
15 December 2021 | $500,000 | $250,000 | ||
15 December 2022 | $1,103,000 | $250,000 | ||
Total | $2,306,000 | $500,000 |
Note 1: In the event that drilling commences at Esperanza prior to the payment date of 15 June 2021, a payment of US$150,000 will be made, which amount shall be subtracted from the US$300,000 payment due on 15 June 2021.
Upon completion of the Option payments and share issuances, Latin Metals will be deemed to have exercised the Option and will have earned an undivided 100% legal and beneficial interest in and to the Project, subject to a 2% Net Smelter Royalty (“NSR”) to be granted to the Vendor. Latin Metals will have a right to buy back 0.5% of the NSR for USD $1,000,000, at which time the NSR payable to the Vendor shall be 1.5%.
During the Option period, Latin Metals will be responsible for maintaining the exploration concession and permits comprising the Project in good standing, and paying all fees and assessments, and taking such other steps, required in order to do so. There will be no other work commitments, and any work carried out on the Project will be at the sole discretion of Latin Metals.
Esperanza Project
Copper-gold porphyry mineralization at Esperanza is outcropping. All drill holes intersected significant copper-gold mineralization. Drilling highlights include:
Recent drilling (2018) returned the best drill intersection to date (Table 2).
Table 2: Best Drill Hole Intersection To Date
Drillhole | Azimuth | Dip | From (m) | To (m) | Interval (m) 1 | Copper (%) | Gold (g/t) | Copper Equivalent (%)2 |
18-ESP-025 | 280 | -67 | 0 | 387 | 387 | 0.57 | 0.27 | 0.78 |
including | 0 | 368 | 368 | 0.59 | 0.28 | 0.81 | ||
including | 0 | 232 | 232 | 0.74 | 0.33 | 1.00 |
Notes 1 True width is not known. 2 Copper equivalent = Copper grade % + (0.795 x gold grade g/t), where the conversion factor of 0.795 is calculated by comparing the value of copper $2.20/lb to the value of gold at $1,200/oz and assuming 100% recovery.
Quality Assurance / Quality Control
Drilling undertaken by Centenera in 2018 was supervised by on site personnel at the project who rigorously collect and track samples, which are then sealed and shipped to SGS Minerals (“SGS”) for analysis. SGS’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are independently controlled by company using blanks, control reference material and duplicate samples.
Qualified Person
Keith J. Henderson, P.Geo., is the Company’s qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an employee of the Company and holds securities of the Company.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America. The Company operates with a Prospect Generator model focusing on the acquisition of prospective exploration properties at minimum cost, completing initial evaluation through cost-effective exploration to establish drill targets, and ultimately securing joint venture partners to fund drilling and advanced exploration. Shareholders are exposed to the upside of a significant discovery without the dilution associated with funding the highest-risk drill-based exploration.
Among the Company’s asset portfolio, key assets include the Organullo Gold project; a 100%-owned property in which Yamana Gold Inc. are earning an initial 70% interest through various work commitments and cash payments (for additional details, see news release dated October 22, 2018).
On Behalf of the Board of Directors of
LATIN METALS INC.
“Keith Henderson”
President & CEO
For further details on the Company readers are referred to the Company’s web site (www.latin-metals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
For further information, please contact:
Keith Henderson
Suite 2300
1177 West Hastings Street
Vancouver, BC, V6E 2K3
Phone: 604-638-3456
E-mail: info@latin-metals.com