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Latin Metals and Patagonia Gold Agree Terms for Acquisition of Mina Angela Project, Chubut Province, Argentina
VANCOUVER, British Columbia, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF) announces that i
About this update from Latin Metals Inc
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF) announces that it has signed an offer letter (the “Offer Letter”) with Patagonia Gold Corp. (TSXV: PGDC) (“Patagonia”), which provides for a six-month due diligence period for Patagonia and sets out the proposed commercial terms of a definitive option agreement (the “Definitive Agreement”) whereby Patagonia will be provided with the option (the “Option”) to acquire the Company’s interest in the Mina Angela project (“Mina Angela” or the “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 royalty (“NSR Royalty”)1 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 De...