Latin Metals Expands Esperanza Copper-Gold Project, San Juan Province, Argentina

VANCOUVER, British Columbia, March 13, 2024 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF), a leading mineral exploration company in South America, announces that it has entered into a binding Letter Agreement (the “Letter Agreement”) with Golden Arrow Resources Corp. (“Golden Arrow”) to earn up to a 100% interest in the 3,500-hectare Huachi Property (“Huachi”). Huachi is contiguous with the Company’s Esperanza Project (“Esperanza”), located in San Juan Province, Argentina (Figure 1).

Figure 1: Location of the Huachi property, located immediately west of the Company’s Esperanza Property, 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% interest in the Huachi project by incurring exploration expenditures totalling US$1,000,000 and making cash payments of US$1,000,000 to Golden Arrow over a four-year period (Table 1). 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 (the “Top-Up Right”) whereby Latin Metals can purchase the remaining 25% interest in the Huachi property (aggregate 100%) by providing notice to Golden Arrow within 60 days after exercise of the Option and paying US$2,000,000 cash to Golden Arrow (Table 1) within 90 days after exercise of the Option. Upon completion of the acquisition, Golden Arrow’s interest shall be reduced to a 1% NSR royalty.

Table 1: Commercial Terms to Acquire up to 100% Interest in the Huachi Property, San Juan Province
Anniversary Following the Commencement Date	Work Commitment USD		Cash Payments USD		Vesting
First Anniversary	$100,000		$100,000		-
Second Anniversary	$150,000		$150,000		-
Third Anniversary	$250,000		$250,000		-
Fourth Anniversary	$500,000		$500,000		75%
Top-Up Right	-		$2,000,000		25%
Total	$1,000,000		$3,000,000		100%
Note. The four-year Option Period commences on the Commencement Date, which is the date on which the environmental permit (Declaración de Impacto Ambiental or DIA) is approved and in force, allowing exploration activities to begin. If the DIA is not obtained on or before February 28, 2027, then the Definitive Agreement will be terminated.

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% and Golden Arrow holding 25%, 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% or less, its interest shall be reduced to a 1% NSR royalty.