Patagonia Exercises Option to Acquire Latin Metals’ Mina Angela Project, Chubut Province, Argentina
LC284153-1
Patagonia Exercises Option to Acquire
Latin Metals’ Mina Angela Project,
Chubut Province, Argentina
NR21-03 March 15, 2021
Vancouver, B.C. – Latin Metals Inc. (“Latin Metals ” or the “ Company”) - (TSXV: LMS)
(OTCQB: LMSQF) announces that it has received an option exercise notice from Patagonia Gold
Corp. (“ Patagonia”), pursuant to an option agreement ( the “Option Agreement”) among
Patagonia, Latin Metals and an Argentine subsidiary of Latin Metals, whereby Patagonia w as
granted an irrevocable option (the “ Option”) to acquire a 100% interest in the Mina Angela
project (the “Project” or “Mina Angela”), located in the Province of Chubut, Argentina.
In connection with exercis e of the Option, Patagonia (throug h its subsidiary) will make a cash
payment to Latin Metals of US$250,000 pursuant to the terms of the Option Agreement, which
payment is due on or before March 26 , 2021 (Table 1). Pursuant to the terms of the Option
Agreement, Latin Metals will be entitled to receive a 1.25% net smelter returns royalty
(“Royalty”) from future production on the Project, half of which Royalty can be repurchased by
Patagonia from Latin Metals at any time for US$1 million.
Table 1: Schedule of 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 Option
Agreement – September 12, 2020 US$200,000 (paid) -- --
Second Option Payment – Upon exercise of the
Option – due on or before March 26, 2021 US$250,000 -- 100%
Final Payment1 US$500,000 -- 100%
Commencement of Production at the Project -- 1.25% NSR
Royalty 100%
NR21-03 Continued 2 March 15, 2021
LC284153-1
Notes:
1. 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 exploitation mining activities on the Project, irrespective of
whether Patagonia has obtained the required permits for such exploration and mining activities or the actual
performance of such activities.
“Patagonia’s purchase of Mina Angela 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 royalty interest, in this case a 1.25% Royalty,” stated Keith Henderson, Latin Metals’
President and CEO. “Receipt of US$250,000, together with a contingent future payment of
US$500,000 will conclude the US$1,090,000 disposition of the Mina Angela asset. We would like
to wish Patagonia’s management team every success in moving the project forward.”
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 Company is primarily focused on the
Calcatreu project in Rio Negro and the development of the Cap- 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 and is one of the largest
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 America. The Company operates with an investor-focused Prospect
Generator model, which brings potential advantages to shareholders 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
the impact associated with commodity price cycles. In all future property agreements, the
Company intends to retain a minority interest across the portfolio, providing shareholders with
exposure to potential discovery upside.
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 disclosure herein. Mr. Henderson is not independent of the
Company, as he is an employee of the Company and holds securities of the Company.
NR21-03 Continued 3 March 15, 2021
LC284153-1
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: [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.
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, statements regarding the remaining Option payments payable by
Patagonia to Latin Metals pursuant to the Option Agreement, the Company's expectation that it will be able to
operate as a Prospect Generator by entering into agreements to acquire interests in additional mineral 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 its properties, 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, 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 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 and 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, that Patagonia will be satisfied with the lifting of the mining
restrictions in the Chubut Province such that it makes the final Option payment to the Company, the inability of the
Company to operate as a Prospect Generator and enter into agreements to acquire interests in additional mineral
NR21-03 Continued 4 March 15, 2021
LC284153-1
properties and attract joint venture partners for the exploration and development of same, operating and technical
difficulties in connection with mineral 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 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, social and economic impacts of COVID‐19,
other risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals
(including TSX Venture Exchange acceptance for filing of 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 limitations 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 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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