Plata Latina Enters Option Agreement with Fresnillo FOR Naranjillo Property
NEWS RELEASE
PLATA LATINA ENTERS OPTION AGREEMENT WITH FRESNILLO
FOR NARANJILLO PROPERTY
February 8, 2017, VANCOUVER, BC – Plata Latina Mine rals Corporation (TSX-V: PLA) (“Plata Latina” or the
“Company”) is pleased to announce that, through its wholly-own ed subsidiary Plaminco S.A. de C.V., it has formall y
entered into the previously announced option agreem ent (the "Agreement") with a wholly-owned subsidiar y of Fresnillo
PLC ("Fresnillo") with respect to the Company's Nar anjillo Property (“Naranjillo” or the “Property”). The Agreement
provides Fresnillo the option to acquire the Proper ty for a total cash commitment of US$2.15 million, to be paid over 36
months (the “Term”). In addition, Fresnillo is requ ired to spend US$3.0 million in exploration on the Property. With the
purchase of Naranillo, Plata Latina retains a 3.0% Net Smelter Return (“NSR”) royalty interest. Naran jillo is situated in
Guanajuato, Mexico, consisting of a total of 20,655 hectares, and is adjacent to Fresnillo’s Cerro Blanco Project.
"Our high-grade discovery at Naranjillo and the res ulting Agreement with Fresnillo, the world's larges t silver producer,
validates the Plata Latina exploration strategy of discovering hidden, high-grade silver-gold district s within the Mexican
Silver Belt," commented Plata Latina’s President an d CEO, Mike Clarke. "We look forward to putting the proceeds from
this Agreement towards the advancement of our three existing properties, particularly Vaquerias, which exhibits significant
shallow discovery potential based on early testing and drilling. Further, the funding will enable us t o look for additional
opportunities in the prolific Mexican Silver Belt using our successful exploration strategy."
The Company intends to use the funding from the Agr eement to conduct geophysical and geologic field wo rk to define
high potential drill targets on its other three pro mising properties in the Mexican Silver Belt as wel l as initiate drilling to test
these targets. Plata Latina plans on focusing on it s Vaquerias property where early stage first phase drilling has identified
a much shallower hidden vein system with initial re sults of up to 737 g/t silver over 0.55 metres (as previously announced
on May 12, 2013).
In addition, Plata Latina plans to re-initiate fiel d work to generate new grass roots exploration proj ects for the portfolio.
Given the Company’s early success with the deeper h igh-grade discovery at Naranjillo, Plata Latina pla nts to advance
exploration for the next high-grade silver district in Mexico through its proven exploration strategy of discovering hidden,
high-grade silver-gold districts in the Mexican Silver Belt.
Summary of Option Agreement Terms:
A summary of the terms of the Agreement are set forth below:
• Fresnillo will pay a total of US$2.15 million over the Term, as follows:
o Initial payment of US$400,000, of which US$200,000 has already been received;
o An aggregate of US$1.65 million to be paid in five installments, every six months over the Term; and,
o US$500,000 at the end of the Term for the option t o acquire the Property.
• Fresnillo must incur US$3.0 million in exploration expenditures on the Property over the Term.
• Upon acquisition of the Property by Fresnillo, the Company will retain a 3.0% NSR.
• Fresnillo will be able to reduce the NSR to 2% by paying the Company an additional US$1.0 million, an d,
thereafter, may reduce the remaining NSR to nil by paying the Company an additional US$5.0 million.
• Fresnillo will be required to pay advance royalty payments of US$100,000 annually, until the earlier of (a) a
maximum of US $1.0 million in advance royalty payme nts having been paid, or (b) commercial production of
minerals commences from the Property.
The transaction is subject to, among other customar y requirements, the Company receiving shareholder a nd regulatory
approvals.
About Plata Latina Minerals
Plata Latina Minerals is a Canadian exploration com pany with a portfolio of four silver-gold propertie s situated in the
prolific Mexican Silver Belt focused on discovering new silver-gold vein districts. Plata Latina’s exp ertise in the ore horizon
concept and extensive experience in Mexico provides a competitive edge for discovery of new districts between old
historic deposits. Its highly experienced managemen t team and board are focused on developing its port folio of high-
potential targets and exploring additional value-cr eation opportunities. The Company trades on the TSX Venture
Exchange under “PLA”.
For more information on Plata Latina, please contac t :
Mike Clarke, President & CEO
Telephone: +1-800-933-9925
Email: [email protected]
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility
for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statemen ts and other statements that are not historical fac ts including
statements about the Company’s latest exploration p rogram. Such forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions that c ould cause actual results to vary materially from t arget results or
events predicted in these forward-looking statement s. As a result, investors are cautioned not to plac e undue reliance on
these forward-looking statements.
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 inform ation is subject to
a number of assumptions, risks and uncertainties, i ncluding risks related to exploration, uncertaintie s related to financings,
the uncertainties of interpreting exploration results and other risks associated being a mineral explo ration company.