Business
Latin Metals and Barrick Gold Corporation Enter into Earn-In Agreement for Exploration Projects, Santa Cruz Province, Argentina
VANCOUVER, British Columbia, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS, OTCQB: LMSQF) announces that it
About this update from Latin Metals Inc
[{"type":"text","content":" VANCOUVER, British Columbia, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS, OTCQB: LMSQF) announces that it has entered into an earn-in agreement (the “Earn-In Agreement”) with a wholly-owned subsidiary of Barrick Gold Corporation (“Barrick”) (TSX: ABX and NYSE: GOLD). Under the terms of the Earn-In Agreement, Barrick has the right to acquire up to an 85% interest in the Company’s Cerro Bayo, Cerro Bayo Sur and La Flora properties (the “Properties”), located in Santa Cruz Province, Argentina (Figure 1). Barrick’s earn-in right consists of an initial option (the “First Option”) to acquire a 70% interest in the Properties and a second option (the “Second Option”) to acquire an additional 15% (aggregate 85%) interest. The Properties are currently subject to an underlying option agreement dated February 7, 2019, as amended (the “Underlying Option Agreement”) (see news release dated February 11, 2019), pursuant to which Latin Metals has the right to acquire an ultimate 100% interest in the Properties. To exercise the First Option and earn a 70% interest by the seventh anniversary of the Effective Date (defined below) of the Earn-In Agreement, Barrick must: Make cash payments totaling US$2,321,793 pursuant to the Underlying Option Agreement; Make cash payments to Latin Metals totaling US$750,000 (inclusive of $150,000 on the Effective Date); Incur exploration expenditures with respect to the Properties totaling US$5,000,000, of which US$1,000,000 is a binding commitment (work or cash in lieu) to be spent before the second anniversary of the Effective Date; and Prepare and deliver to Latin Metals a Preliminary Economic Assessment prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). To exercise the Second Option and earn an additional 15% interest by the ninth anniversary, Barrick must: Make additional cash payments to Latin Metals totaling US$425,000 (aggregate US$1,175,000); and Sole fund all costs and deliver to Latin Metals a Prefeasibility Study prepared in accordance with NI 43-101. The binding nature of Barrick’s expenditure commitment does not become effective until the parties have entered into an agreement with the underlying property owner to acknowledge Barrick’s rights under the Earn-In Agreement and...