Latin Metals (TSXV:LMS, OTCQB:LMSQF) is an exploration company focused on precious metals and copper projects in historically resource-rich regions of South America, specifically Peru and Argentina.
The company operates on a prospect generator model, focusing on acquiring prospective exploration properties at minimum cost, then completing initial evaluation through cost-effective exploration to establish drill targets. Latin Metals ultimately secures joint venture partners to fund drilling and advanced exploration, and in doing so, exposes shareholders to the upside of mineral discoveries while conserving capital.
- Recent deals announced with AngloGold Ashanti, Barrick Gold Corporation, and Libero Copper and Gold.
- Option agreements for $34M of investment by partners, including cash payments to Latin Metals and exploration on the ground.
- Focus on high-potential projects in Latin America, including under-explored areas of Peru and Argentina
- Management and advisors have decades of experience working for major mining companies and have a comprehensive understanding of industry needs
- Portfolio of 20 projects provides commodity exposure to gold, silver, copper and battery metals
- Only 57M shares issued and almost 50% with management and board
- Latin Metals ultimately retains a minority or royalty interest in all projects providing shareholders with exposure to exploration or discovery upside
- Investment by partners is non-dilutive and preserves corporate structure. Cash payments to Latin Metals reduces the need for equity financing.
Key Projects - Argentina
Organullo Gold Project
The Organullo Project is a 100%-owned exploration property located in Salta Province, northwest Argentina. The project has a large alteration and mineralization footprint with geochemical anomalies and targets over a 10km strike length making Organullo one of the largest untested geochemical anomalies in Argentina. The project was historically known as a gold exploration play with locally high-grade gold at surface and with historical small-scale mining having been recorded at the Julio Verne Mine in the 1930s. Gold potential remains a focus today but with newly recognized potential for copper porphyry systems.
Latin Metals has agreed option terms with AngloGold Ashanti, who will option the Organullo, Trigal, and Ana Maria projects. AngloGold will have an initial option to earn a 75% interest through cash payments of US$2,550,000 and exploration expenditures of US$10,000,000, all over 5 years. AngloGold will have a second option to earn an additional 5% (aggregate 80%) interest by delivering an independent NI 43-101 Mineral Resource estimate and making a cash payment equal to US$4.65 per gold equivalent ounce of Measured and Indicated resource defined.
Esperanza Copper-Gold Project
Argentina has a proven history of copper production, with 11 significant copper projects in the country's northwest region controlled by large mining companies. The Esperanza copper-gold project hosts an extensive copper-gold porphyry system exposed at the surface and extends to at least 400m depth. Latin Metals' most recent drill campaign returned 387m @ 0.57% copper and 0.27 g/t gold from the surface with mineralization open at depth.
The project is optioned to Libero Copper and Gold (TSX.V: LBC), who can earn a 70% interest by making payments to the underlying owner of US$1,900,000, cash payments of US$500,000 to Latin Metals, and incurring exploration expenditure of US$2,000,000.
Cerro Bayo Project
Latin Metals’ Cerro Bayo and La Flora are optioned to Barrick Gold Corporation. Barrick has the right to acquire up to an 85% interest in the Company’s Cerro Bayo, Cerro Bayo Sur and La Flora properties, located in Santa Cruz Province, Argentina, by cash payments of aggregate US$ 1,175,000 to Latin Metals, meeting payment obligations of aggregate US$ 2,321,793 to the underlying optionor, by incurring exploration expenditures of US$ 5,000,000, and by delivering various NI 43-101 technical reports, including a Prefeasibility Study. The properties are currently subject to an underlying option agreement pursuant to which Latin Metals has the right to acquire an ultimate 100% interest in the properties.
Latin Metals has options to earn a 100% interest in the Fiorentina, Aylen and Pedro properties, also located in the Deseado Massif, Santa Cruz. The Deseado Massif is home to a number of advanced-stage exploration projects owned or operated by mid-tier to major mining companies. Since 1990, discoveries in this region have included almost 600 million ounces of silver and approximately 20 million ounces of gold. Latin Metals’ projects are located close to advanced prospects or operating mines and are considered prospective for gold and silver.
Mina Angela Property
Having completed the sale of the Mina Angela project to Patagonia Gold in Q2 2021, Latin Metals holds a 1.25% NSR royalty on future production. An additional US$500,000 cash payment is also due to Latin Metals on receipt of mine permits.
Key Projects — Peru
The 100%-owned, 4,000-hectare Lacsha project is located within the Cretaceous age Coastal Copper Belt where discoveries include copper porphyry, VMS, IOCG and intrusion-related gold deposits. The project is prospective for copper-molybdenum porphyry. The project is located south and contiguous with Newmont's (TSX:NGT) Sumacwayra copper-molybdenum discovery.
The project was acquired by staking in 2020, and Latin Metals has moved quickly to complete extensive surface exploration, resulting in the discovery of multiple copper-molybdenum mineralized zones. Highlights include surface rock chip sampling, which has identified consistent copper mineralization at surface. Highlights include:
Recently signed community agreements are valid over 3 years and allow the Company to move forward with drill permitting in 2022.
Latin Metals' Key Objectives
2021 Completed Deals:
- Organullo, Trigal, and Ana Maria projects – Optioned out to AngloGold Ashanti and will have an initial option to earn a 75% interest through cash payments of US$2,550,000 and exploration expenditures of US$10,000,000, all over 5 years.
- Latin Metals has entered into an earn-in agreement with Barrick Gold Corporation wherebyBarrick has the right to acquire up to an 85% interest in the Company’s Cerro Bayo, Cerro Bayo Sur and La Flora properties with cash payments of aggregate US$ 1,175,000 to Latin Metals, meeting payment obligations of aggregate US$ 2,321,793 to the underlying optionor, by incurring exploration expenditures of US$ 5,000,000, and by delivering various NI 43-101 technical reports, including a Prefeasibility Study.
- Esperanza Copper Gold Project, Argentina – Optioned out to Libero Copper and Gold in US$4.5 million deal. Latin Metals retains 30% interest.
- Mina Angela Gold Project, Argentina – Sale of asset for US$1.1 million. Latin Metals retains 1.25% royalty on future production.
- Lacsha Copper-Molybdenum Project, Peru – Complete extensive induced polarization geophysical survey to finalize drill targets and complete drill permitting. On completion find partner or proceed to complete drill testing.
- Auquis Copper-Gold Project, Peru – Initiate and complete surface exploration ready for partner in late 2022.
- El Quemado Lithium Project, Argentina – secure option partner of purchaser for the project.
- Project Generation, Peru – identification and acquisition of additional exploration projects throughout Peru
Keith Henderson - President, CEO & Director
Henderson has years of global experience in the mineral exploration industry throughout Africa, Europe, and North and South America. He was educated in Europe, graduating with B.Sc. (Hons) and M.Sc. in geology and has extensive experience in multiple mineral deposit types and commodities.
Eduardo Leon - Exploration Manager, Peru
Leon worked as a Senior geologist on Lumina Copper's Taca Taca project in northern Argentina from 2011-12, where he helped manage an extensive drilling campaign that resulted in a major copper-gold porphyry discovery. Thereafter, Eduardo held a variety of senior technical positions with companies working in Peru, Mexico, El Salvador, Nicaragua and Brazil. Most recently, he served as Exploration Manager for Auryn Resources.
Dr. Mario Castelli - President
Dr. Castelli is a trained lawyer with 30 years of experience, featuring a particular specialization in exploration and mining. Mario has also held a variety of senior agency positions at both the Provincial and Federal levels.
Daniel MacNeil - Technical Advisor
MacNeil is a precious and base metal specialist with more than 19 years of experience from continental-scale project generation to in-mine resource expansion in a wide variety of geological settings. Daniel currently consults with mid-tier, private and junior mining/exploration companies on mine resource expansion and early through advanced exploration target delineation, drill testing and exploration property evaluations globally.
Dani Palahanova - Chief Financial Officer and Corporate Secretary
Ms. Palahanova currently serves as Chief Financial officer of the Company. She has been working with publicly listed Canadian companies in the minerals exploration sector for over 15 years. She has held positions as CFO, Controller and Corporate Secretary for various junior exploration and technology companies in Vancouver. Ms. Palahanova holds an Executive MBA degree from Simon Fraser University and a CPA, CGA designation.
Elyssia Patterson - Manager of Investor Relations
Ms. Patterson has extensive knowledge of the going public process with private start-ups and works closely with private companies implementing strategies to list on the TSX or the CSE. Currently, Ms. Patterson is the CEO of Lycan Capital Corp., a corporate communications and marketing consulting company focused on activities such as coordinating investor relations and advancing the general corporate development of public companies.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Latin Metals and seek advice from a qualified investment advisor.
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