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Latin Metals and Patagonia Gold Extend Terms for Acquisition of Mina Angela Project, Chubut Province, Argentina
VANCOUVER, British Columbia, March 17, 2020 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF) announces that
About this update from Latin Metals Inc
[{"type":"text","content":" VANCOUVER, British Columbia, March 17, 2020 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF) announces that it has entered into an amending agreement (“Amending Agreement”) with Patagonia Gold Corp. (TSXV: PGDC) (“Patagonia”) to extend, by six months, the date by which Patagonia must enter into the Definitive Agreement (as defined below) to acquire the Company’s interest in the Mina Angela project (“Mina Angela” or the “Project”) located in the Province of Chubut, Argentina (the “Extension”). The Definitive Agreement must now be executed by September 12, 2020. The Company previously provided an offer letter to Patagonia (the “Offer Letter”), which outlined a due diligence period for Patagonia and set out the proposed commercial terms of a definitive option agreement (the “Definitive Agreement”), pursuant to which Patagonia would be granted the option (the “Option”) to acquire the Company’s interest in Mina Angela. Patagonia accepted the Offer Letter on August 12, 2019 and made an initial US$40,000 cash payment to Latin Metals (see Latin Metals news release dated August 13, 2019). In connection with the Extension, Patagonia has made a US$100,000 cash payment to Latin Metals, being an additional payment of US$50,000 in consideration for the Extension, and a US$50,000 advance payment on the first option payment, due at the time of signing the Definitive Agreement. Patagonia has now made aggregate cash payments of US$140,000 to Latin Metals. To exercise the Option in full, Patagonia will be required to make additional payments to Latin Metals in the aggregate amount of US$950,000 cash (Table 1), with the next cash payment of US$200,000 due on September 12, 2020. Upon the exercise of the Option, 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. Commercial Terms The amended schedule of commercial terms of the Definitive Agreement, whereby Patagonia can acquire 100% of the Company's interest in the Project, subject to the NSR Royalty, are as follows: Table 1: Amended Schedule of 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) -- -- Addit...