Mr. Keith Henderson reports
LATIN METALS EXPANDS ESPERANZA COPPER-GOLD PROJECT, SAN JUAN PROVINCE, ARGENTINA
Latin Metals Inc.
has entered into a binding letter agreement with Golden Arrow Resources Corp. to earn up to a 100-per-cent interest in the 3,500-hectare Huachi property. Huachi is contiguous with the company's Esperanza project located in San Juan province, Argentina.
Option agreement terms
Under the terms of the letter agreement, Latin Metals has been granted the option to earn an initial 75-per-cent interest in the Huachi project by incurring exploration expenditures totalling $1-million (U.S.) and making cash payments of $1-million (U.S.) to Golden Arrow over a four-year period (see the table entitled "Commercial terms to acquire up to 100-per-cent interest
in the Huachi property, San Juan province"). The letter agreement will serve as the basis for the preparation of the definitive agreement, to be completed within 90 days after the execution of the letter agreement (signed).
Following the exercise of the option, Latin Metals shall have a top-up right whereby Latin Metals can purchase the remaining 25-per-cent interest in the Huachi property (aggregate 100 per cent) by providing notice to Golden Arrow within 60 days after exercise of the option and paying $2-million (U.S.) cash to Golden Arrow (see the table entitled "Commercial terms to acquire up to 100-per-cent interest
in the Huachi property, San Juan province") within 90 days after exercise of the option. Upon completion of the acquisition, Golden Arrow's interest shall be reduced to a 1-per-cent NSR (net smelter return) royalty.
If Latin Metals elects not to exercise the top-up right, Latin Metals and Golden Arrow will form a joint venture (JV), with Latin Metals holding 75 per cent and Golden Arrow holding 25 per cent, to continue exploration and development of the Huachi property. In order to maintain its interest in the JV, each party will contribute to work programs in proportion to its ownership interest. If either party dilutes to 15 per cent or less, its interest shall be reduced to a 1-per-cent NSR royalty.
The company is entitled to perform due diligence over the 30 days following the execution of the letter agreement. If the due diligence is not satisfactory to Latin Metals, the company may terminate the letter agreement without any obligation to Golden Arrow.
About Esperanza and Huachi
Esperanza is a copper-gold porphyry exploration project where a copper-gold porphyry system has been partially defined by drilling and where a pyrite halo is exposed at surface over an area of 1,400 metres by 850 m. Drill hole 18-ESP-025 (see news release dated May 8, 2018), completed by Latin Metals, returned 387 m grading 0.57 per cent copper and 0.27 gram per tonne (g/t) gold from surface, including 166 m grading 0.84 per cent copper and 0.37 g/t gold from surface (true width unknown). Mineralization is open in all directions with an interpreted vector to the west, toward the Huachi property. Latin Metals has an option to acquire a 100-per-cent interest in the Esperanza property.
About Latin Metals
Inc.
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 financing drilling and advanced exploration. Shareholders gain exposure to the upside of a significant discovery without the dilution associated with financing the highest-risk drill-based exploration.
Qualified person
Keith J. Henderson, PGeo, is the company's qualified person as defined by National Instrument 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.
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