Latin Metals Inc. announced that it has entered into a definitive option agreement with Golden Arrow Resources Corp. to acquire up to a 100% interest in the Huachi property.
By Panorama Minero
Huachi is a 3,500-hectare copper-gold project located in San Juan Province. The Huachi property is immediately contiguous with Latin Metals’ Esperanza project.
Definitive Agreement Terms
Latin Metals has the right to acquire an initial 75% interest in the Huachi property by completing US$1,000,000 in exploration expenditures and US$1,000,000 in cash payments to Golden Arrow over a four-year period.
Upon earning the 75% interest, Latin Metals has a Top-Up Right to acquire the remaining 25% interest (for an aggregate 100% ownership) by paying US$2,000,000 in cash to Golden Arrow within 90 days.
Should Latin Metals choose not to exercise the Top-Up Right, the parties will form a joint venture (JV) with Latin Metals holding 75% and Golden Arrow 25%. Each party will fund its pro-rata share of future expenditures. A party diluting below 15% will have its interest converted to a 1% net smelter return (NSR) royalty.
Work commitments and cash payments commence on the first anniversary of approval of the environmental permit (Declaración de Impacto Ambiental or DIA), approving the start of exploration activities including drilling.
About the Esperanza and Huachi Projects
The Esperanza project hosts a partially defined copper-gold porphyry system, with surface expression of a pyrite halo measuring 1,400m x 850m. Historical drilling by Latin Metals returned 387m @ 0.57% Cu and 0.27 g/t Au, including 166m @ 0.84% Cu (Copper) and 0.37 g/t Au (Gold) from surface. Mineralization remains open in all directions and at depth, with vectors suggesting continuity westward toward the Huachi project.
Latin Metals previously entered into an option agreement regarding the Esperanza and Huachi properties with Atlantic Metals Limited, a wholly owned subsidiary of Moxico Resources plc., a private copper mining company with producing and development assets in Zambia and the Kingdom of Saudi Arabia, made as of October 7, 2024.
