Categories: Precious Metals
Topics: Gold Stocks

A Brilliant Mining Model for Gold Investors

Prospect generator Latin Metals Inc. (TSX-V: LMS)(OTC: LMSQF) — currently trading around C$0.23 per share — is selling its 100%-owned El Quemado lithium project, a non-core asset, to South American Lithium (“SAL”) for C$900,000 in cash and shares.

Latin Metals will retain a 2% NSR royalty on any future production from the project, half of which can be repurchased by SAL for US$3,000,000 in cash at any time prior to production.

 

Latin Metals CEO Keith Henderson commented via press release:

“This transaction is consistent with Latin Metals’ strategy to monetize non-core assets, like El Quemado, while retaining a royalty interest, in this case, the 2.0% NSR Royalty on future production from the project. Consideration of $900,000 provides the Company with $400,000 of non-dilutive cash as well as $500,000 in securities which provides Latin Metals with exposure to the project’s future success…”

As noted, the LMS team deems El Quemado as a non-core asset, and, hence, its pending sale to South American Lithium for cash and shares perfectly illustrates the prospect generator model wherein Latin Metals will retain an ongoing interest in the property (in this instance, in the form of a 2% net smelter return royalty). 

As you’ll see further in our exclusive interview coming right up, Latin Metals’ core focus is on precious and base metals; primarily gold, silver and copper. 

The company has two JVs with majors as the co-flagships: In 2022, LMS optioned out its Cerro Bayo gold-silver project in Argentina to Barrick Gold (NYSE: GOLD) and its Organullo gold-copper project, also in Argentina, to AngloGold Ashanti (NYSE: AU) with both majors set to spend significant capital on exploration and drilling in the coming quarters on their respective projects. 

Mr. Henderson added,

“AngloGold initiated exploration at Organullo only two weeks after signing the definitive option with Latin Metals in mid-2022, and it has advanced the project quickly to the point where it has drill-ready targets. The main advantage of working with major mining companies is the technical excellence and experience that they bring to a project. AngloGold has assembled an experienced technical team, and its exploration approach has resulted in the definition of new targets for drill testing at Organullo.”

AngloGold is permitted for an airborne magnetic survey over Organullo with permits pending for a Phase-1, 7,000 meter drill program for up to 39 holes at the Breccia Hill, Axel, and Nemo targets. 

In the property portfolio image above, you’ll note the two JVs in Argentina (Cerro Bayo to the south and Organullo to the north) plus a host of additional Argentinian projects along with an array of Peruvian projects. 

In other words, lots of catalysts and shots-on-goal for current and potential LMS shareholders in 2023 and beyond, including drilling at multiple projects and additional potential JVs lining up. 

Our own Gerardo Del Real of Junior Resource Monthly caught up with Latin Metals director of corporate communications Elyssia Patterson to discuss the El Quemado transaction and the intelligent strategy it is deploying to the benefit of LMS shareholders as an active prospect generator. Please enjoy!

For more information on Vancouver-based Latin Metals, be sure to contact Ms. Patterson at the company’s IR department at 604-638-3456 or via email at info@latin-metals.com and sign up to receive updates directly from the company here.

Mike Fagan
Editor, Resource Stock Digest