Yamana Commences Drill Program at Latin Metals’ Organullo Gold Project, Salta Province, Argentina
Yamana Commences Drill Program at Latin Metals’
Organullo Gold Project, Salta Province, Argentina
NR19-11 19 November, 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 P rovince, Argentina. The Organullo Property is 100% owned by Latin Metals. Yamana
Gold Inc. (“Yamana”), through a subsidiary, has been granted an option (the “Option”) to acquire
an initial 70% interest in the Property (see news release dated October 22, 2018).
During 2019, Yaman a funded an ex tensive mapping, rock sampling and soil sampling program
(Figure 1) establishing geochemical anomalies over a strik e length of approximately 8km . A
diamond drill program has commenced on the Property and Yamana plans to complete
approximately 3,300m of diamond drilling for a total of 16 exploration drill holes (Figure 2).
Figure 1: Results of Yamana’s 2019 Rock and Soil Sampling Programs
NR19-11 Continued 2 19 November, 2019
Yamana Exploration to Date in 2019
Yamana completed significant work during 2019, including collection of more than 1,000 rock
samples, 150 soil samples, and detailed geological mapping over more than 1,000 hectares.
Results of rock and soil sampling received from Yamana at the end of Q3 confirm the existence
of a geochemical anomaly over approximately 8km strike length, with the highest-grade surface
samples clustered over a 3.5km strike length over Organullo Ridge and the NW Target. Individual
rock samples in this area range from below detection up to 8.94 g/t gold. Soil sampling was
utilized as a screening tool in select areas where rock outcrop is scarce. A number of anomalies
were identified by soil sampling i ncluding the South Extension area where soil samples range
from below detection up to 1.26 g/t gold.
More than 2,000m of historical drill core has been re-logged and more than 80 samples collected
and analyzed by Terraspec ®. Drill core logging focused on characterization of high -grade and
low-grade zones.
Yamana commenced drilling following the issuance of a drill permit and water use permit, with a
total of 16 drill holes planned for approximately 3,300m. The majority of drill holes will be located
on Organullo Ridge, testing a strike length of approximately 1,100m, with a single exploratory
drill hole planned for the NW Zone ( Figure 2). Areas slated for future exploration include the
Southwest Extension and Gaucho zones (Figure 1).
Figure 2: Yamana’s Planned Diamond Drill Program
NR19-11 Continued 3 19 November, 2019
Option Agreement with Yamana
Under the terms of the Agreement, Yamana may exercise the Option 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 1,000,000 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 Metals shall be deemed to have 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 party's interest in the j oint 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 party 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).
Stock Option Grant
The Company also announces that it has granted 4,500,000 common share stock options (each,
an "Option") to various employees and consultants of the Company and its affiliates. The Options
entitle the holder to purchase Shares at a price of $0.13 per Share for a period of 36 months from
the issue date.
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.
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
NR19-11 Continued 4 19 November, 2019
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 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 Organullo 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.
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, the change of the Company's corporate name, the expected effective
date of the Consolidation and the expected outstanding Shares after 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
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.
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
NR19-11 Continued 5 19 November, 2019
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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