Latin American Minerals Signs Gold Streaming Agreement for Paso Yobai

Latin American Minerals Inc.  announced that it’s signed a non-binding term sheet for a gold streaming metal purchase agreement with SilverStream SEZC. The agreement is for its Paso Yobai gold project.
The company also announced a C$500,000 private placement.
Highlights are as follows:

• SilverStream to provide US$1,000,000 to LAT in 3 tranches, $500,000 on the signing of a binding Metal Purchase Agreement and two further tranches of $250,000 based on near term production milestones.
• SilverStream will have the right to purchase 43% of the total production of gold from the project, at a price per ounce equaling the lesser of US$350 per ounce or 80% of the prevailing market price of gold until 1,500 ounces have been delivered. Thereafter the metal stream shall reduce to 7.5% of production for the life of the project.
• A SilverStream representative will be appointed as a non-executive director of LAT.

Basil Botha, chairman and CEO of Latin American Minerals, commented:

This gold stream is an important milestone for LAT. It validates the extensive work already done and the viability of the project. It also enables us to implement the recommendations from the J.T. Boyd report (see shareholder update February 22^nd, 2016) to improve production at the Independencia mine. The concurrent financing will be used for G&A and production based initiatives.

Click here to read the full Latin American Minerals Inc. (TSXV:LAT) press release.