Magna Terra Signs Option Agreement with Andean Metals for the Luna Roja Project in Santa Cruz, Argentina
Magna Terra Signs Option Agreement with
Andean Metals for the Luna Roja Project in
Santa Cruz, Argentina
Toronto, Ontario--(Newsfile Corp. - October 6, 2025) -
Magna Terra Minerals Inc.
(TSXV:
MTT)
("
Magna Terra
" or the "
Company
") and
Andean Metals Corp
. ("
Andean Metals
" or "
Andean
")
are pleased to announce that they have entered into a Definitive Option Agreement (the "
Agreement
")
for Andean Metals to have the right to acquire a 100% interest in the Luna Roja Project ("
Luna Roja
" or
the "
Project
"), located in Santa Cruz Province, Argentina (
Figure 1
) from the Company.
Under the terms of the Agreement, Andean can earn a 100% interest in the Project for total
consideration of C$2,375,000 payable in cash and Andean common shares as outlined below:
Luna Roja
Term
Cash (C$)
Cash / Share (C$)
Total (C$)
60-day exclusivity period (paid)
$75,000
-
$75,000
On Signing Definitive Agreement (paid)
$100,000
-
$100,000
1
st
Anniversary
$125,000
$275,000
$400,000
2
nd
Anniversary
$125,000
$375000
$500,000
3
rd
Anniversary
$125,000
$475,000
$600,000
4
th
Anniversary
$125,000
$575,000
$700,000
TOTAL
$675,000
$1,700,000
$2,375,000
Additionally, Magna Terra shall retain the right to a nominee on the Board of Directors of Andean, under
certain terms and conditions as defined in the Agreement.
"We are very excited to partner with the Andean Metals team on the drill-ready Luna Roja precious
metals project in the prolific Deseado Massif region of Santa Cruz Province, Argentina, home to world
class mines like Cerro Negro (Newmont), Cerro Moro (Pan American Silver), Cerro Vanguardia
(AngloGold Ashanti), as well as others. The Deseado Massif remains a significantly underexplored
geological domain known for hosting large low sulphidation epithermal precious metals systems. The
Luna Roja Project boasts an early-stage drill epithermal gold-silver discovery at Cruz del Sur and a 3-
kilometre long zone of anomalous geochemistry that highlights the discovery potential of the Project.
This transaction further supports our corporate strategy of leveraging our deep project portfolio to
provide non-dilutive liquidity to advance our priority exploration assets, while maintaining upside
exposure to these projects through a growing portfolio of equity ownership and royalties."
~ Lew Lawrick, President and CEO, Magna Terra Minerals Inc.
"This transaction represents a significant step forward for Andean Metals as we establish a strong
foothold in one of the most geologically prospective and underexplored gold-silver belts in the world.
Luna Roja offers compelling discovery potential, supported by robust early-stage results and
proximity to world-class operations. Our team is excited to build on Magna Terra's excellent technical
work and begin advancing Luna Roja through systematic exploration and drilling. We believe this
partnership highlights our commitment to unlocking value through disciplined exploration and
strategic collaboration."
~ Joaquin Mignaquy, CEO, Andean Metals Corp.
Figure 1:
Location of Magna Terra's exploration projects in Santa Cruz Province, Argentina including
the Luna Roja Project outlined in red and location of major producing mines.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11586/269164_c39a5e0594b6f9e1_002full.jpg
Luna Roja Project Highlights
~10,000 hectares in 3 exploration licenses.
Accessible year-round via road access from Fitz Roy located 80 kms to the northeast.
Centered along a 3 km section of the northwest striking Via Lactea Fault lying just 75 kms
northwest of Cerrado Gold's Minera Don Nicholas Mine infrastructure and 30 kms north-northwest
of the Los Calandrias mining and exploration tenements.
2019 discovery hole drilled by Magna Terra - LR DDH002 intersected
75.0 m of 0.62 g/t Au and
5.6 g/t Ag
(from 37.0 m to 112.0 m).
The deepest part of the zone, which is oxidized,
included 42.0 m of 1.01 g/t Au and 4.6 g/t Ag
(from 68.0 m to 110.0 m),
suggesting increased
grade with depth
.
A 3 km x 800 m striking Au trend underlain by anomalous soil geochemistry and Induced
Polarization ("
IP
") geophysical signature.
Multiple drill ready targets in three distinct surface mineralized horizons including the Estrella del
Norte, Orion, Cruz del Sur and Signos target areas.
The
Luna Roja Project
is Magna Terra's most advanced exploration asset in Argentina, located in the
prolific Deseado Massif region of Santa Cruz Province approximately 75 km to the northwest of the new
Don Nicolas mine and 30 km to the north-northwest of the Las Calandrias project. The Project is
accessible year-round, and benefits from access to infrastructure including roads and power, and water.
Luna Roja's geology includes rhyolitic volcanic rocks with intense silicification and hydrothermal
alteration, typical of productive low-sulphidation gold systems in the region. The Project is centered
along a 3 km section of the northwest striking Via Lactea Fault with coincident IP resistivity and
chargeability anomalies and intermittently exposed low-sulphidation epithermal Au-Ag veins and
breccias.
Exploration work to date at Luna Roja includes 360 rock chip and float samples, 741 trench samples,
715 soil samples, and 17.6 line km of IP surveying. In 2019, Magna Terra completed eight diamond drill
holes, totalling 1,184 metres, in a first phase drill program that led to the discovery of a significant gold-
silver mineralized zone at Cruz del Sur (see Magna Terra news release dated April 16, 2019).
Highlight assays from the initial drilling program include:
75.0 m of 0.62 g/t Au and 5.6 g/t Ag (from 37.0 m to 112.0 m), including 42.0 m of 1.01 g/t Au and
4.6 g/t Ag (from 68.0 m to 110.0 m) in drill hole LR_DDH002; and
51.4 m of 0.26 g/t Au and 9.37 g/t Ag (from 44.6 m to 96.0 m), including, 2.0 m of 1.08 g/t Au and
79.60 g/t Ag (from 62.0 m to 64.0 m) in drill hole LR-DDH001.
Exploration work to date has identified gold intercepts at shallow depths, with the potential for future
exploration to identify geologic controls to the mineralization, and to expand the mineralized footprint and
establish continuity. Luna Roja is well positioned for additional near-term discovery, potential resource
delineation and possible future development, supported by a strong regional geological framework and
positive early-stage results.
The Luna Roja Project is subject to a one percent (1%) NSR, payable to Orogen Royalties Inc.
Andean will be focussing on advancing the Luna Roja Project and the parties will not be moving forward
at this time with an agreement for the Boleadora Project (as previously disclosed in the press release
dated July 28, 2025). The Boleadora Project remains available for purchase or option.
In connection with the Agreement, the Company will pay a 5% finder's fee upon receipt of each payment
from Andean.
Qualified Person and Technical Disclosure
This news release has been reviewed and approved by David A. Copeland, P.Geo., a non-independent
consultant to the Company and a "Qualified Person" as defined under National Instrument 43-101 -
Standard for Disclosure for Mineral Projects
.
Sampling of drill core from the 2019 program at Luna Roja was carried out with core being cut by angle
grinder and half of the core retained for logging and potential re-analysis. Blind standards, blanks, and
duplicates were inserted into the sample chain accounting for 10% of samples. Samples were then
delivered, by Magna Terra staff, to Andesmar in Caleta Olivia, Santa Cruz, Argentina from where they
were transported to ALS Chemex Laboratories in Mendoza, Argentina, for gold fire assay and multi
element analysis.
All technical disclosure contained in this news release with respect to the Project was supplied by
Magna Terra, and Andean and its directors and officers have relied on Magna Terra for such
information.
About Magna Terra
Magna Terra Minerals Inc. is a precious and critical metals focused exploration company, headquartered
in Toronto, Canada. Magna Terra is focused on acquiring and advancing its high-potential mineral
projects in Atlantic Canada and Argentina while generating value for shareholders and minimizing
shareholder dilution through option and joint venture partnerships where appropriate; leveraging our
ability to explore, grow, and transact projects. The Company is focused on exploring our 100%-owned
Humber Copper-Cobalt Project in Newfoundland and Labrador; our 100% owned Rocky Brook Gold and
Critical Metals Project in the historic Bathurst Mining Camp of New Brunswick; and our 100%-owned
Cape Spencer Gold Project in New Brunswick. In addition, the Company has optioned the Great
Northern Project in Newfoundland to Gold Hunter Resources Inc. ("Gold Hunter") for total cash and share
consideration of $9.5 million over a 2-year period, and currently holds an approximate 28.9% equity
interest in Gold Hunter. The Company has also optioned the Luna Roja Project in Argentina to Andean
Metals Corp. for total cash and share consideration of $2.375 million over a 4-year period. Further, the
Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which
includes its large 100% owned Boleadora Project recently retained from Newmont Corp., as well as
several additional district scale drill ready projects available for purchase or option/joint venture.
About Andean Metals
Andean Metals Corp. is an Argentina focused mineral exploration company, with a strong local technical
team backed by experienced capital markets professionals. Andean is a British Columbia corporation
that is a reporting issuer in the Provinces of British Columbia and Alberta.
Forward-Looking Statements
Neither the 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
release.
Cautionary Statements Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable Canadian legislation. All statements in
this news release that are not purely historical are forward-looking statements and include statements
regarding beliefs, plans, expectations and orientations regarding the future. Although the Company
and Andean Metals believe that such statements are reasonable and reflect expectations of future
developments and other factors which management believes to be reasonable and relevant, the
Company and Andean Metals can give no assurance that such expectations will prove to be correct.
Forward-looking statements are typically identified by words such as: "believes", "expects",
"anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "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 and Andean Metals have applied
several material assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company and Andean Metals to
differ materially from any future results, performance or achievements expressed or implied by the
forward-looking information. Such risks and other factors include the inability of the Company and
Andean Metals to execute their respective proposed business plans and carry out planned future
activities. Other factors may also adversely affect the future results or performance of the Company
and Andean Metals, including general economic, market or business conditions, future prices of gold,
changes in the financial markets and in the demand for precious metals, changes in laws, regulations
and policies affecting the mineral exploration industry, and the Company's and Andean Metals'
investment and operation in the mineral exploration sector, as well as the risks and uncertainties
which are more fully described in the Company's and Andean Metals' annual and quarterly
management's discussion and analysis and in other filings made by the Company and Andean
Metals, as applicable, with Canadian securities regulatory authorities under the Company's and
Andean Metals' SEDAR+ profile at
www.sedarplus.ca
. Readers are cautioned that forward-looking
statements are not guarantees of future performance or events and, accordingly, are cautioned not to
put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
These forward-looking statements are made as of the date of this news release and, unless required
by applicable law, the Company and Andean Metals assume no obligation to update the forward-
looking statements or to update the reasons why actual results could differ from those projected in
these forward-looking statements.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Magna Terra Minerals Inc.
Lewis Lawrick
President, CEO and Director
Phone: 905-301-9983
Email:
Website:
www.magnaterraminerals.com
Andean Metals Corp.
Joaquin Mignaquy
CEO
Phone: +54 9 11 6913-9449
Email:
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/269164