VANCOUVER, British Columbia, March 03, 2023 (GLOBE NEWSWIRE) --
Latin Metals Inc.
announces that it has entered into an agreement (the “
”) with South American Lithium Ltd. (“
”), pursuant to which SAL will purchase from Latin Metals a 100% interest in the El Quemado lithium project (the “
” or “
”), located in the Province of Salta, Argentina, for total consideration of $900,000 (the “
”). Latin Metals will retain a 2% net smelter returns royalty (the “
2% NSR Royalty
”) on the Project. Unless otherwise specified, all references to dollars are to amounts in Canadian dollars.
Under the terms of the Agreement, within ten days of signing the Agreement, SAL will make a cash payment of $400,000 and issue 1,000,000 units to Latin Metals. Each unit will consist of 1,000,000 common shares in the capital of SAL (issued at a deemed price of $0.50) and 1,000,000 share purchase warrants (exercisable for an equal number of common shares at $1.00 per share for a period of 5 years).
Latin Metals will retain the 2% NSR Royalty from future production on the Project, half of which 2% NSR Royalty (1.0%) can be repurchased by SAL from Latin Metals at any time prior to production for US$3,000,000 cash.
“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,” stated Keith Henderson, Latin Metals’ President and CEO. “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.”
Mr. Henderson continues, “South American Lithium is a private Canadian company which is currently finalizing a going-public transaction. The royalty-focused structure of this transaction reflects our view that SAL has significant technical and management experience in Argentina, and we would like to wish SAL’s management team every success in moving the Project forward.”
About South American Lithium
South American Lithium is a private Canadian corporation which intends to complete a going-public transaction during the second quarter of 2023. The resulting issuer is expected to hold 58,000 hectares of lithium exploration claims in Salta Province, Argentina. Near-term plans for the Argentina assets, including El Quemado, will include the construction of road access to known lithium-bearing pegmatites, environmental assessment in support of drill permitting, and an extensive exploration drill program.
About El Quemado
El Quemado is located in Salta Province, Argentina, and is a large-scale regional lithium play, which, when combined with SAL’s contiguous ground-holding, forms a 58,000-hectare prospect. The land position covers ground prospective for lithium LCT pegmatites and rare earth elements. A portion of the property was mined sporadically between 1943 and 1981. Small-scale mining was focused on tantalum, niobium and bismuth production. Latin Metals’ initial exploration established the existence of lithium-bearing pegmatites at several prospects within the property area.
The scientific and technical content of this release has been approved for disclosure by Keith J. Henderson P.Geo, a Qualified Person as defined by NI 43-101 and the Company’s CEO. Mr. Henderson is not independent of the Company, as he is an employee of the Company and holds securities of the Company.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America. The Company operates with a Prospect Generator model focusing on the acquisition of prospective exploration properties at minimum cost, completing initial evaluation through cost-effective exploration to establish drill targets, and ultimately securing joint venture partners to fund drilling and advanced exploration. Shareholders gain exposure to the upside of a significant discovery without the dilution associated with funding the highest-risk drill-based exploration.
On Behalf of the Board of Directors of
LATIN METALS INC.
“ Keith Henderson ”
President & CEO
For further information, please contact:
999 West Hastings Street
Vancouver, BC, V6C 2W2
Neither 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 news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the closing of the Transaction, the completion of a going-public transaction by SAL, future exploration of the Project, anticipated exploration program results from exploration activities, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "may", "will", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, 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 has applied several material assumptions, including without limitation, that it will obtain TSX Venture Exchange acceptance, if applicable, and the required corporate approvals for the Transaction, that market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Project in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Project, and SAL and the Company’s ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Project, estimation or realization of mineral reserves and mineral resources, requirements for additional capital, future prices of precious metals and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company to obtain any necessary permits, consents or authorizations required, including of the TSX Venture Exchange, financing or other planned activities, changes in laws, regulations and policies affecting mining operations, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading "Risk Factors" in the Company's latest Management Discussion and Analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com .
Readers are cautioned not to place undue reliance on forward looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.