Latin Metals and Patagonia Gold Sign Definitive Option Agreement for Acquisition of Mina Angela Project, Chubut Province, Argentina

About this update from Latin Metals Inc

[{"type":"text","content":" VANCOUVER, British Columbia, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS) (OTCQB: LMSQF) announces that it has entered into a definitive option agreement (“Agreement”) with Patagonia Gold Corp. (“Patagonia”) under the terms of which Patagonia are granted an irrevocable option (the “Option”) to acquire a 100% interest in the Mina Angela property (the “Property”), located in the Province of Chubut, Argentina.  On execution of the Agreement, Latin Metals received a cash payment of US$200,000 from Patagonia (aggregate US$340,000 to date).  The Agreement outlines additional payments of US$750,000, with the next payment of US$250,000 being due on or before March 12, 2021 (Table 1).  Upon the exercise of the Option, Patagonia will be required to grant to Latin Metals a 1.25% net smelter returns royalty (“NSR Royalty”)1 on any future production from the Project.  Keith Henderson, Latin Metals’ President and CEO stated, “The agreement with Patagonia Gold and the decision to enter into the Option is consistent with Latin Metals’ strategy to joint venture core assets and where possible to monetize non-core assets like Mina Angela, while keeping a retained interest, which in this case is a 1.25% NSR Royalty on future production.  We have a great deal of confidence that Patagonia’s management team can execute on this project and that the retained royalty interest has potential value to Latin Metals’ shareholders.” Mr. Henderson continued, “Mina Angela is owned 100% by Latin Metals, is in a Province where mining activity is currently restricted, and the Company has never incurred exploration costs on the project.  Aggregate cash payments of US$340,000 have been received from Patagonia to date, which helps the Company meet another key strategic objective of securing non-dilutive cash.  These payments contribute to G&A costs as well as financing the acquisition of additional exploration projects throughout South America, such as the Lacsha and Auquis copper projects recently acquired in Peru.” Table 1: 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) -- -- Additional Payment as consideration for extension of the due diligence ...

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