Latin American Minerals Closes Option Agreement to Acquire 100% of the Sail Pond Silver Project in Newfoundland
Latin American Minerals Closes Option Agreement to
Acquire 100% of the Sail Pond Silver Project in
Newfoundland
October 2, 2020 – Toronto, Ontario – Latin American Minerals Inc. (TSXV: LAT)
(the “Company”) is pleased to announce that, further to its press release of August 24, 2020, it
has entered into a definitive option agreement dated September 23, 2020, with Altius Resources
Inc, a wholly-owned subsidiary of Altius Minerals Corp. (TSX: ALS, “Altius”), to purchase a 100%
interest in the Sail Pond silver-copper-lead-zinc project (the “Project” or “Sail Pond Property ”)
on the Great Northern Peninsula of Newfoundland.
Under the terms of the option agreement, the Company has made the initial payment to Altius by
issuing an aggregate of 58,991,254 common shares of the Company (each, a “Common
Shares”). In order to exercise option the Company must also incur a minimum of $500,000 of
expenditures on or before September 23, 2021, and a further $1,000,000 of expenditures on or
before September 23, 2023. Additionally, subject to TSX Venture Exchange approval, the
Company will issue to Altius an additional $200,000 in Common Shares on the earlier of
September 23, 2021 or on the completion of an equity financing for gross proceeds of a minimum
of $2,000,000. Upon transfer of ownership, Altius will retain certain preferential purchase rights
as it relates to an underlying 2% NSR royalty covering the Sail Pond Property.
The 58,991,254 Common Shares issued to Altiu s pursuant to the option agreement represent
approximately 19.9% of the issued and outstanding C ommon Shares, on a non- diluted basis.
Prior to entering into the option agreement, Altius did not own any Common Shares. Altius may
acquire or dispose of securities of the Company, including on the open market or through private
transactions, in the future depending on market conditions, reformulation of plans and/or other
relevant factors. A copy of Altius’ early warning report will appear on the Company’s profile on
SEDAR and may also be obtained by calling (709) 576-3440 (38 Duffy Place, 2nd Floor, St John's,
Newfoundland A1B 4M5). The Common Shares issued to Altius are subject to hold period until
January 24, 2021.
The Company is also pleased to announce that it has begun preparations to begin a Phase 1
work program on the Sail Pond Property . The program includes soil sampling, rock sampling,
trenching and channel sampling. This will be an effort to further refine drill targets and add new
data points to the previous extensive exploration work performed over the last 3 years. This work
included numerous high-grade silver and base metal rock grab samples across a combined 9km
trend including samples of 2030 g/t Ag and 7% Cu, 944g/t Ag and 5.24% Cu and 803g/t Ag with
3.58% Cu*. A map of some previous rock grab sampling results can be seen below:
* Note: the reader is cautioned that rock grab samples are selective by nature and values reported
may not represent the true grade or style of mineralization across the Project.
The Company intends to complete this program within the next 60 days. Further details can be
found in the NI 43-101 technical report which can be found on the Company’s website (link).
Mathew Wilson, CEO of Latin American Minerals stated, “We very much look forward to
advancing our understanding of the Sail Pond Project. It is rare to find such high grades over such
a large area in such a favorable jurisdiction that has not seen a single drill hole. Moreover, we are
excited to lever the expertise and team of our new partner, Altius, allowing us to avoid any COVID
related mobilization delays and quickly advance this project towards defining drill targets.”
Sampling and Analytical Protocols
Quality Assurance-Quality Control (“QA/QC”). All rock grab samples and channel samples
were collected by Altius personnel and were secured and delivered to Eastern Analytical in
Springdale, Newfoundland, where sample preparation (drying, crushing and pulverizing) and
analytical work was completed, with further analysis completed at ALS Global in North Vancouver,
Canada. Blanks and standards were regularly inserted into the sample sequence. For multi -
element trace analysis, the sample pulps were dissolved in four acids and analyzed by ICP-OES.
For samples exceeding the upper limits of the trace analysis, an ore grade analysis was
completed. Samples reporting more than 50 g/t silver were re-assayed with a modified ICP-OAS
method with a four-acid digestion. Gold values were determined by 30 g fire assay and AA finish.
All data were reviewed and verified by Roderick Smith, Chief Geologist for Altius, a Qualified
Person as defined by NI 43-101.
About the Company
Latin American Minerals Inc. is a mineral exploration company primarily focused on Canadian
exploration opportunities . The company is exploring for silver and base metals at its newly
acquired Sail Pond project in Northwestern Newfoundland and for uranium and rare earths at its
Butt Township Property in Nipissing, Ontario.
Qualified Person
Roderick Smith, M.Sc., P.Geo., Chief Geologist for Altius, a Qualified Person as defined by
National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the
scientific and technical data presented herein and has reviewed and approved this project
summary.
For more information, please contact:
Mathew Wilson, Mfin, CFA
President and CEO
Tel: 1-416-643-7630
E-mail: [email protected]
Website: www.latinamericanminerals.com
The Company’s public documents may be accessed at www.sedar.com.
For further information, please visit our website at www.latinamericanminerals.com or email us
at
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date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events
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facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The
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