Latin Metals has an option to earn a 100% interest in 6 projects located within the Deseado Massif in Santa Cruz Province, Argentina. The Cerro Bayo, Cerro Bayo and La Flora projects have been optioned to Barrick Gold Corporation - (February 7 news release). The Aylen, Pedro and Fiorentina projects are currently being explored by Latin Metals and the Company is seeking to secure option partners to fund drilling and advanced exploration.
The Deseado Massif is home to a number of advanced-stage exploration projects owned or operated by mid-tier to major mining companies. Since 1990, discoveries in this region have included almost 600 million ounces of silver and approximately 20 million ounces of gold. Latin Metals’ projects are located close to advanced prospects or operating mines and are considered prospective for gold and silver.
The properties are subject to an underlying option agreement, pursuant to which Latin Metals has the right to acquire an ultimate 100% interest.
Optioned to Barrick Gold Corporation
Latin Metals has entered into an earn-in agreement with Barrick Gold Corporation whereby Barrick has the right to acquire up to an 85% interest in the Cerro Bayo, Cerro Bayo Sur and La Flora properties Barrick’s earn-in right consists of an initial first option to acquire a 70% interest and a second option to acquire an additional 15% interest.
To exercise the first Option and earn a 70% interest by the seventh anniversary of the Earn-In Agreement, Barrick must:
To exercise the second option and earn an additional 15% interest by the ninth anniversary, Barrick must: