The Prospector News

Latin Metals and Patagonia Gold Agree Terms for Acquisition of Mina Angela Project, Chubut Province, Argentina

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Latin Metals and Patagonia Gold Agree Terms for Acquisition of Mina Angela Project, Chubut Province, Argentina

 

 

 

 

 

Latin Metals Inc. (TSX-V: LMS) (OTCQB: LMSQF) announces that it has signed an offer letter with Patagonia Gold Corp. (TSX-V: PGDC) which provides for a six-month due diligence period for Patagonia and sets out the proposed commercial terms of a definitive option agreement whereby Patagonia will be provided with the option to acquire the Company’s interest in the Mina Angela project located in the Province of Chubut, Argentina. To exercise the Option in full, Patagonia will be required to make payments to Latin Metals in the aggregate amount of US$1 million cash and Patagonia will be required to grant to Latin Metals a 1% net smelter returns royalty1 on any future production from the Project. The Offer Letter was accepted by Patagonia on August 12, 2019 and Patagonia has made the initial cash payment of US$40,000 to Latin Metals as contemplated under the Offer Letter (see Table 1 below). 

 

“The proposed sale of Mina Angela is consistent with the Company’s strategy of placing its assets in the hands of capable partners and allowing Latin Metal’s shareholders retain exposure to the assets’ future potential,” stated Keith Henderson, Latin Metal’s President & CEO. “Mina Angela is a former producing mine with significant exploration upside. I believe that the management team at Patagonia has the ability to finance and execute the exploration necessary to realize that potential upside and, if they are successful, Latin Metals and its shareholders stand to benefit from royalty payments on any future production from Mina Angela.”

 

Commercial Terms

 

The Offer Letter sets out the expected terms of the Definitive Agreement, whereby Patagonia can acquire 100% of the Company’s interest in the Project, subject to the NSR Royalty in favour of the Latin Metals as follows: 

 

Table 1: Schedule of Proposed Commercial Terms

 

 

Schedule of Payments Cash Payments Royalty
Payments
Cumulative
Earned
Interest
Within ten days from acceptance of the Offer Letter US$40,000
(paid)2
 
Upon signing the Definitive Agreement US$250,000  
Upon exercise of the Option (within six months of signing the Definitive Agreement) US$250,000 100%  
Within 30 days of verification that the legal restrictions preventing development of mining activity in the Chubut Province and at the Project have been lifted (to Patagonia’s satisfaction) US$500,000 100%  
Commencement of Production at the Project 1% NSR
Royalty1
100%  

 

Notes:


  1.  Patagonia can purchase 50% of the NSR Royalty (0.5%) from the Company at any time for US$1 million cash.
    2.  Upon receipt of the US$40,000, the Company agreed to deal exclusively with Patagonia in respect of Mina Angela

 

Upon exercising the Option, Patagonia is expected to take responsibility for keeping the mining properties comprising Mina Angela in good standing. Latin Metals will be responsible for all obligations arising or accrued on Mina Angela until Patagonia exercise the Option.

 

The closing of the acquisition of Mina Angela by Patagonia is subject to certain customary closing conditions, including the entry into the Definitive Agreement and receipt of TSX Venture Exchange acceptance.

 

About the Mina Angela Property

 

The Mina Angela property is situated in the Somuncura Massif of southern Argentina and is comprised of 44 individual claims located approximately 50 km east-southeast of Patagonia’s 100% owned Calcatreu gold project. The Navidad silver and base metal deposit is located 45 km further to the south-southeast of Mina Angela. Cardero Argentina S.A., Latin Metal’s wholly-owned subsidiary, is currently the 100% owner of the mineral claims comprising the Project, subject to a 1% NSR from future production on Mina Angela.

 

About Patagonia Gold

 

Patagonia Gold Corp. is a TSX Venture Exchange listed company that seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The Company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 350 properties in several provinces of Argentina, Chile and Uruguay and is one of the largest landholders in the province of Santa Cruz, Argentina.

 

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. is earning an initial 70% interest through various work commitments and cash payments.

 

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.

 

Posted August 13, 2019

Share this news article

MORE or "UNCATEGORIZED"


GoGold Announces Annual Net Income of $8.1M USD for September 30, 2019

GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to ann... READ MORE

December 13, 2019

Lundin Gold Announces First Export of Gold Concentrate and Doré

Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) reports the fi... READ MORE

December 13, 2019

O3 Mining Intersects 9.3 g/t Au Over 6.0 m, Including 25.7 g/t Au Over 1.9 m at Epsilon

O3 Mining Inc. (TSX-V: OIII) is pleased to provide new results fr... READ MORE

December 13, 2019

GT Gold Closes C$8.3 Million Investment by Newmont Goldcorp Corporation

GT Gold Corp. (TSX-V: GTT) is pleased to report that it has close... READ MORE

December 13, 2019

Canada Cobalt Intersects Massive Silver as Castle East Discovery Builds Out

Canada Cobalt Works Inc. (TSX-V: CCW) (OTC: CCWOF) (Frankfurt: 4T... READ MORE

December 13, 2019

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions