Latin Metals and AngloGold Ashanti Enter into Non-binding Letter of Intent Regarding Three Gold Exploration Projects, Salta Province, Argentina
Latin Metals and AngloGold Ashanti Enter into Non-binding
Letter of Intent Regarding Three Gold Exploration Projects,
Salta Province, Argentina
NR21-11 September 02, 2021
Vancouver, British Columbia – Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS,
OTCQB: LMSQF) announces that it has entered into a non-binding letter of intent (the “ LOI”) with
AngloGold Ashanti (“ AngloGold”) (NYSE: AU, JSE: ANG, ASX: AGG) regarding the Company’s Organullo,
Ana Maria, and Trigal Gold Projects (the “ Projects”) located in Salta Province, northwestern Argentina
(Figure 1). The LOI provides the parties with a 90-day period to negotiate and, if deemed advisable, enter
into a definitive agreement, through which the parties contemplate that AngloGold will be granted the
option to acquire up to an 80% interest in the Projects.
“Securing joint venture partners is a key part of Latin Metals’ prospect generator operating model
and we are pleased to have entered into the LOI with AngloGold, as a potential partner for our
projects in Salta province,” stated Keith Henderson, the Company’s President & CEO. “Relatively
advanced-stage exploration projects like Organullo require significant expenditures to assess the full
potential of the project, which expenditures would otherwise need to be financed through dilutive
equity financing. Under the terms contemplated by the LOI, Latin Metals would retain a significant
minority position and have the opportunity to participate with AngloGold in a future joint venture.”
Option Terms
The LOI contemplates that upon execution of a definitive agreement AngloGold will be granted the option
to earn an initial 75% interest in the Projects by making cash payments to Latin Metals in the aggregate
of USD $2,550,000 and spending in the aggregate of USD $10,000,000 on exploration expenditures within
five years of the execution and delivery of a definitive agreement. The LOI contemplates that AngloGold
will have the opportunity to increase its interest in the Projects to 80% by: (i) preparing an independent
mineral resource estimate in accordance with National Instrument 43-101 Standards of Disclosure for
Mineral Projects on one or more of the Projects; and (ii) paying to Latin Metals an amount of USD $4.65
per gold equivalent ounce contained within the measured and indicated mineral resource.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America.
The Company operates with a Prospect Generator model focusing on the acquisition of prospective
exploration properties at minimum cost, completing initial evaluation through cost-effective exploration
to establish drill targets, and ultimately securing joint venture partners to fund drilling and advanced
exploration. Shareholders gain exposure to the upside of a significant discovery without the dilution
associated with funding the highest-risk drill-based exploration.
NR21-11 Continued 2 September 02, 2021
Qualified Person
Keith J. Henderson, P.Geo., is the Company’s qualified person as defined by NI 43-101 and has reviewed
the scientific and technical information that forms the basis for portions of this news release. He has
approved the technical disclosure herein. Mr. Henderson is not independent of the Company, as he is an
employee of the Company and holds securities of the Company.
On Behalf of the Board of Directors of
LATIN METALS INC.
“Keith Henderson”
President & CEO
For further details on the Company readers are referred to the Company's web site ( www.latin-
metals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
For further information, please contact:
Keith Henderson
Suite 890
999 West Hastings Street
Vancouver, BC, V6C 2W2
Phone: 604-638-3456
E-mail: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private
Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including,
without limitation, statements regarding the negotiation, settlement and entry into a definitive agreement, the exercise of the
option, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements.
Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove
to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans",
"expects", "may", "will", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential"
or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that
may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release,
the Company has applied several material assumptions, including without limitation, that it will be able to negotiate and enter
into a definitive agreement, and that it will obtain TSXV acceptance, if applicable, and the required corporate approvals for the
proposed transaction, that market fundamentals will result in sustained precious metals demand and prices, the receipt of any
necessary permits, licenses and regulatory approvals in connection with the future development of the Company’s Argentine
projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued
operation of the Company projects, and the Company’s ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to differ materially from any future results, performance or achievements expressed
or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical
difficulties in connection with mineral exploration and development and mine development activities at the Projects, estimation
or realization of mineral reserves and mineral resources, requirements for additional capital, future prices of precious metals and
copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for
commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as
anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company to obtain any
NR21-11 Continued 3 September 02, 2021
necessary permits, consents or authorizations required, including TSXV acceptance of the proposed transaction, financing or other
planned activities, changes in laws, regulations and policies affecting mining operations, currency fluctuations, title disputes or
claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and
liabilities, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business,
risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed
under the heading "Risk Factors" in the Company's latest Management Discussion and Analysis and other filings of the Company
with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website
at www.sedar.com.
Readers are cautioned not to place undue reliance on forward looking statements. Except as otherwise required by law, the
Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by
reference herein.
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