Latin Metals and Patagonia Gold Sign Definitive Option Agreement for Acquisition of Mina Angela Project, Chubut Province, Argentina Latin Metals Receives US$200,000 Cash Payment
LC216181-1
Latin Metals and Patagonia Gold Sign Definitive Option
Agreement for Acquisition of Mina Angela Project,
Chubut Province, Argentina
Latin Metals Receives US$200,000 Cash Payment
NR20‐08 September 15, 2020
Vancouver, B.C. – Latin Metals Inc. (“Latin Metals” or the “Company”) ‐ (TSXV: LMS)
(OTCQB: LMSQF) announces that it has entered into a definitive option agreeme nt
(“Agreement”) with Patagonia Gold Corp. (“Patagonia”) under the terms of which Patagonia are
granted an irrevocable option (the “Option” ) t o a c q u i r e a 1 0 0 % i n t e r e s t i n t h e M i n a A n g e l a
property (the “Property”), located in the Province of Chubut, Argentina.
O n e x e c u t i o n o f t h e A g r e e m e n t , L a t i n M e t a l s r e c e i v e d a c a s h p a yment of US$200,000 from
Patagonia (aggregate US$340,000 to date). The Agreement outlines additional payments of
US$750,000, with the next payment of US$250,000 being due on or before March 12, 2021
(Table 1).
Upon the exercise of the Option, Patagonia will be required to grant to Latin Metals a 1.25% net
smelter returns royalty (“NSR Royalty”)1 on any future production from the Project.
Keith Henderson, Latin Metals’ President and CEO stated, “The a greement with Patagonia Gold
and the decision to enter into the Option is consistent with Latin Metals’ strategy to joint venture
core assets and where possible to monetize non‐core assets like Mina Angela, while keeping a
retained interest, which in this case is a 1.25% NSR Royalty on future production. We have a
great deal of confidence that Patagonia’s management team can execute on this project and that
the retained royalty interest has potential value to Latin Metals’ shareholders.”
Mr. Henderson continued, “Mina Angela is owned 100% by Latin Me tals, is in a Province where
mining activity is currently restricted, and the Company has ne ver incurred exploration costs on
the project. Aggregate cash payments of US$340,000 have been received from Patagonia to
date, which helps the Company meet another key strategic objective of securing non‐dilutive
cash. These payments contribute to G&A costs as well as financ ing the acquisition of additional
exploration projects throughout South America, such as the Lacs ha and Auquis copper projects
recently acquired in Peru.”
NR20‐08 Continued 2 September 15, 2020
Table 1: Commercial Terms
Schedule of Payments Cash Payments Royalty
Payments
Cumulative
Earned Interest
Within ten days from acceptance of the Offer
Letter US$40,000 (paid) ‐‐ ‐‐
Additional Payment as consideration for
extension of the due diligence period US$50,000 (paid) ‐‐ ‐‐
Advance on First Option Payment US$50,000 (paid) ‐‐ ‐‐
First Option Payment ‐ Upon signing Definitive
Option Agreement – September 12, 2020 US$200,000 (paid) ‐‐ ‐‐
Second Option Payment ‐ Upon exercise of the
Option – by March 12, 2021 US$250,000 ‐‐ 100%
Final Payment2 US$500,000 ‐‐ 100%
Commencement of Production at the Project ‐‐ 1.25% NSR
Royalty1 100%
Notes:
1. Patagonia can purchase 50% of the NSR Royalty (0.625%) from the Company at any time for US$1 million cash.
2. Within thirty (30) days from the lifting of the Chubut Province mining bans in such a manner that Patagonia
thereafter has the ability to perform exploration and exploitat ion mining activities on the Property, irrespective of
whether Patagonia has obtained the required permits for such exploration and mining activities or the actual
performance of such activities.
About the Mina Angela Property
The Mina Angela property is situated in the Somuncura Massif of southern Argentina and is
comprised of 44 individual claims located approximately 50 km east‐southeast of Patagonia’s
100% owned Calcatreu gold project. The Navidad silver and base metal deposit is located 45 km
further to the south‐southeast of Mina Angela.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development company listed on the TSX Venture Exchange.
The Company seeks to grow shareholder value through exploration and development of gold and
silver projects in the Patagonia region of Argentina. The Compa ny is primarily focused on the
C a l c a t r e u p r o j e c t i n R i o N e g r o a n d t h e d e v e l o p m e n t o f t h e C a p ‐ Oeste underground project.
Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to
over 360 properties in several provinces of Argentina and Chile a n d i s o n e o f t h e l a r g e s t
landholders in the Province of Santa Cruz, Argentina.
About Latin Metals
Latin Metals is a mineral exploration company with a diversified portfolio of gold and copper
exploration assets in South Amer ica. The Company operates with an investor‐focused Prospect
Generator model, which brings pot ential advantages to sharehold ers such as exposure to
multiple exploration projects reducing discovery risk. Most of the exploration expense could be
borne by JV partners, potentially reducing dilution associated with funding ongoing exploration
activities. The Company’s project portfolio brings exposure to multiple commodities, reducing
NR20‐08 Continued 3 September 15, 2020
the impact associated with commodity price cycles. In all future property agreements, the
Company intends to retain a minority interest across the portfo lio, providing shareholders with
exposure to potential discovery upside.
Qualified Person
Keith J. Henderson, P.Geo., is the Company's qualified person a s defined by NI 43‐101 and has
reviewed the scientific and technical information that forms th e basis for portions of this news
r e l e a s e . H e h a s a p p r o v e d t h e d i s c l o s u r e h e r e i n . M r . H e n d e r s o n 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 2300
1177 West Hastings Street
Vancouver, BC, V6E 2K3
Phone: 604‐638‐3456
E‐mail: info@latin‐metals.com
Neither TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward‐Looking Statements
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
S t a t e s P r i v a t e S e c u r i t i e s L i t i g a t i o n R e f o r m A c t o f 1 9 9 5 . A l l statements, other than statements of historical fact,
included herein including, without limitation, statements regar ding the signing, negotiation and commercial terms
of the Definitive Agreement and exercise of the Option, the anticipated content, commencement, timing and cost of
exploration programs in respect of Mina Angela and otherwise, anticipated exploration program results from
exploration activities, and the Company's expectation that it will be able to operate as a Prospect Generator by
entering into agreements to acquire interests in additional min eral properties and attracting joint venture partners
to fund drilling and conduct advanced exploration on its properties, the discovery and delineation of mineral
deposits/resources/reserves on Mina Angela, the anticipated results from exploration activities 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. Forward‐looking statements are typically identified by words such as: "believes", "will", "expects",
"anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words
and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would,
NR20‐08 Continued 4 September 15, 2020
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 the
Definitive Agreement and that it will obtain TSX‐V acceptance f or filing of thereof, 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,
including the lifting of restrictions preventing the development of mining activities at Mina Angela, the availability of
financing on suitable terms for the development, construction a nd continued operation of the Company's 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 statements. Such risks and other factors include,
among others, actual results of exploration activities, the fact that the Company's granting of the Option to Patagonia
is an option only and there is no guarantee that the Option wil l be exercised by Patagonia or that Patagonia will be
satisfied with the lifting of the mining restrictions in the Chubut Province such that it makes the final payment to the
Company, the inability of the Com pany to operate as a Prospect Generator and enter into agreements to acquire
interests in additional mineral properties and attract joint venture partners for the exploration and development of
same, operating and technical difficulties in connection with m ineral exploration and development and mine
development activities at the Company's mineral properties, the fact that the Company's interests in certain of its
mineral properties are only options and there is no guarantee t hat the interests, if earned, will be certain,
requirements for additional capital, future prices of precious metals, copper‐gold and lithium, changes in general
economic conditions, changes in the financial markets and in th e demand and market price for commodities, other
risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals (including
TSX‐V acceptance for filing of the Definitive Agreement, any current or future property acquisitions or dispositions),
financing or other planned activities, changes in laws, regulations and policies affecting mining operations, hedging
practices and currency fluctuations, title disputes or claims l imitations on insurance coverage and the timing and
possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations,
and risks related to the integration of acquisitions, as well a s those factors discussed under the heading "Risks and
Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company
with the Canadian Securities Authorities, copies of which can b e 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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