Fresnillo Exercises Option to Purchase Plata Latina’S Naranjillo Property IN Mexico
NEWS RELEASE
FRESNILLO EXERCISES OPTION TO PURCHASE PLATA LATINA’S NARANJILLO PROPERTY
IN MEXICO
February 25, 2020, VANCOUVER, BC – Plata Latina Min erals Corporation (TSX-V: PLA) (“Plata Latina” or the
“Company”), is pleased to announce, through its wholly-owned subsidiary Plaminco S.A. de C.V., that Metalúrgica Reyna
S.A. de C.V. (“Reyna”), a wholly owned subsidiary o f Fresnillo plc, has formally exercised its option to purchase the
Company’s Naranjillo Property (“Naranjillo” or the “Property”) in Mexico. The February 8, 2017 Agreem ent (the
“Agreement”) provided Reyna a three-year term in wh ich to conduct exploration and exercise the option.
The Naranjillo Project is a grassroots epithermal s ilver-gold discovery made by the Company in 2012 an d is located in the
Mexican Silver Belt, approximately 35 kilometers so utheast of the Guanajuato mining district. Plata L atina’s ore concept
model and extensive experience along the Mexican Si lver Belt led to the staking of the Property. Dril ling by Plata Latina
from 2012 to 2014 further delineated the silver-gol d vein system. Upon entering the Agreement in 2017 , Reyna continued
with the drilling through 2019.
Summary of Reyna Agreement
The Agreement provided Reyna the right to explore a nd acquire 100% of Naranjillo during a three-year e xploration period
that started on February 8, 2017.
The terms of the option agreement were as follows:
• Provided Reyna the right to explore the Naranjillo Property for a total cash payment to Plata Latina of US$1,650,000
over three years, based on staged payments. The la st of the staged payments was received by the Compa ny in
August 2019.
• During the three-year option period, Reyna was req uired to spend a minimum US$3,000,000 in exploratio n on the
Naranjillo Property, which was completed.
• In January 2020, before the end of the three-year option period, Reyna notified the Company of the ex ercise of its
option to purchase the Naranjillo Property for a payment of US$500,000 and the granting of a 3% net smelter return
royalty to Plata Latina (the “Royalty”).
• Reyna will make advance royalty payments of US$100 ,000 annually until either 1) a maximum of US$1,000 ,000
has been paid or 2) commercial production commences from the Naranjillo Property. Advance royalty pay ments
will commence in February 2021. The advance royalty payments will be deducted from future royalty paym ents if
commercial production commences from the Properties .
• Reyna has the right to 1) buy the first 1% of the Royalty by paying US$1,000,000, 2) buy the remaining 2% Royalty
by paying US$5,000,000, and 3) the right of first refusal in case that Plata Latina decides to sell and/or transfer the
Royalty to third parties.
The transaction and transfer of the Property to Reyna was closed on February 24, 2020.
Qualified Person
This news release has been reviewed and approved by Mark G. Stevens, a Qualified Person as defined und er National
Instrument (NI) 43-101. Mr. Stevens is V.P. Exploration for Plata Latina Minerals and has worked in the mining industry for
more than 35 years, including evaluations of epithermal deposits from around the world.
About Plata Latina Minerals
Plata Latina Minerals is a Canadian exploration company with a portfolio of three silver-gold properties situated in the prolific
Mexican Silver Belt and is focused on exploring the se through its partners. Its highly experienced man agement team and
board are focused on developing its portfolio of high-potential targets and exploring additional value-creation opportunities.
For more information on Plata Latina, please contac t :
W. Durand Eppler, President & CEO
Telephone: +1 800 933 9925
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in the poli cies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The forward-looking statements contained in this ne ws release are made as of the date of this release. Except as required
by applicable law, Plata Latina disclaims any inten tion and assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. Forward-looking inform ation reflects the
current expectations or belief of the Company based on information currently available and such information is subject to a
number of assumptions, risks and uncertainties, inc luding risks related to exploration, uncertainties related to financings,
the uncertainties of interpreting exploration results and other risks associated being a mineral explo ration company.