Latin Metals Provides Update on Organullo Gold Project, Argentina 3,000m Drill Program Planned for Q3 2019
Latin Metals Provides Update on
Organullo Gold Project, Argentina
3,000m Drill Program Planned for Q3 2019
NR19‐06 25 June, 2019
Vancouver, B.C. – Latin Metals Inc. ("Latin Metals" or the "Company") ‐ (TSXV: LMS) (OTCQB:
LMSQF) provides an update on the Organullo Property (“ Organullo” or the “Property”), located
in Salta Province, Argentina. The Organullo Property has been optioned to Yamana Gold Inc.
(“Yamana”) whereby Yamana, through a subsidiary, has been granted an op tion (the “Option”)
to acquire an initial 70% interest in the Property (see news release dated October 22, 2018).
Exploration
Work funded 100% by Yamana in Q1 2019 includes detailed geologi cal mapping that is ongoing
on Organullo Ridge, and in the historical Julio Verne Mine, with mapping completed on 330
hectares to date. Areas of previous surface rock sampling have been extended to the north and
south, with a total of 144 rock and 23 soil samples collected, with sampling planned though Q2
2019 for a cumulative 700 rock samples.
A total of 2,053 metres (m)of drill core have been re‐logged and 81 Terraspec samples have been
collected and sent for analysis. Logging has focused on charac terization of high grade and low
grade zones. Yamana has submitted environmental reports to secure a drill permit which is
pending for the Property and is currently working with contractors to finalize a drill contract.
A planned 3,000m of drilling is expected to commence in mid to late July 2019, including a fence
of drill holes across the main mineralized zone on Organullo ridge as well as a number of
exploration drill holes aiming to expand the area of mineralization. Drill targeting for the program
is ongoing.
Option Agreement with Yamana
Under the terms of the Agreement, Yamana may exercise the Optio n by the (i) preparation and
delivery of a Pre‐Feasibility Study (“ PFS”) prepared in accordance with National Instrument 43‐
101 Standards of Disclosure for Mineral Projects (“NI 43‐101”) that reports an aggregate
Measured and Indicated Mineral Resource of a minimum of 1,000,0 00 gold‐equivalent ounces^
by the 6th anniversary of the effective date of the Agreement; (ii) completion of property‐related
expenditures of at least US$5,000,000 in the aggregate; and (iii) cash payments of US $1,250,000
in the aggregate.
Yamana shall be responsible for funding all exploration expenditures incurred during the Option
period. Upon the exercise of the Option, Yamana and Latin Metal s s h a l l b e d e e m e d t o h a v e
NR19‐06 Continued 2 25 June, 2019
formed a joint venture (the “Joint Venture”) with the initial joint venture interests being 70% as
to Yamana and 30% as to Latin Metals, provided that prior to or concurrently with the exercise
of the Option, Yamana shall have a top‐up right (the “Top‐up Right”) to acquire an additional 5%
interest in the Project (being 75% in aggregate) by making a cash payment to Latin Metals equal
to US$3.00 per gold equivalent ounce of Measured and Indicated Mineral Resources reported in
the PFS.
Yamana and Latin Metals shall each fund exploration and/or development work programs in
proportion to their joint venture ownership percentage, provided that if either party contributes
less than its proportionate interest to a work program, that pa rty's interest in the joint venture
shall be adjusted in accordance with the party's contribution. If, as a result, such party dilutes
their interest to 10% or less, the diluted party’s ownership interest shall automatically convert to
a 2% net smelter return (“NSR”) royalty. The non‐diluting part y may repurchase 1% of the NSR
royalty within 30 days of a production decision being made on the Project for US$5,000,000.
^ Gold equivalent ounces means (i) the number of gold ounces defined as a Measured Mineral Resource,
an Indicated Mineral Resource plus (ii) the number of ounces of silver defined as a Measured Mineral
Resource, an Indicated Mineral Resource expressed as equivalent ounces of gold, calculated at a ratio of
66:1 (all terms as defined in NI 43‐101).
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
release. He has approved the disclosure herein. Mr. Henderson is not independent of the
Company, as he is an employee of the Company and holds securities of the Company.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South
America. The Company operates wi th a Prospect Generator model focusing on the acquisition
o f p r o s p e c t i v e e x p l o r a t i o n p r o p e r t i e s a t m i n i m u m c o s t , c o m p l e t ing initial evaluation through
cost‐effective exploration to establish drill targets, and ultimately securing joint venture partners
to fund drilling and advanced exploration. Shareholders are exposed to the upside of a significant
discovery without the dilution associated with funding the highest‐risk drill‐based exploration.
Among the Company’s asset portfolio, key assets include the Org anullo Gold project; a 100%‐
owned property in which Yamana Gold Inc. is earning an initial 70% interest through various work
commitments and cash payments.
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.
NR19‐06 Continued 3 25 June, 2019
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
States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact,
included herein including, without limitation, the change of th e Company's corporate name, the expected effective
date of the Consolidation and the expected outstanding Shares a fter the completion of the Consolidation 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
t o b e c o r r e c t . F o r w a r d ‐ l o o k i n g s t a t e m e n t s a r e t y p i c a l l y i d e n t ified 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,
might or will occur or be taken or achieved.
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 interests in its mineral properties
are only options and there is no guarantee that 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 the demand and market price for commodities, other risks of the mining industry, the
inability to obtain any necessary governmental and regulatory approvals (including TSXV approval of the name
change and the Consolidation), changes in laws, regulations and policies affecting mining operations, hedging
practices and currency fluctuations, as well as 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 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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