Latin Metals has closed a preliminary agreement with Golden Arrow Resources, providing for the acquisition of up to 100% ownership of Golden Arrow’s 3,500 hectare Huachi project located in Argentina.
This preliminary agreement, outlined in a binding letter of intent, sets a path for significant expansion for Latin Metals (LM) in the San Juan province of Argentina, strengthening its presence alongside its existing Esperanza Project.
Key acquisition in Golden Arrow’s Huachi project
The terms detailed in the letter of intent have been established as the basis for a definitive agreement, which is expected to be finalized within 90 days of its initial signing. This agreement will involve a series of financial and exploration commitments by Latin Metals to secure its participation in the Huachi project.
According to the preliminary stipulations, Latin Metals is committed to initially acquire a 75% interest in the project, which involves incurring in exploration costs 1 million and make cash payments totaling $1 million to Golden Arrow over four years.
Once the initial commitments have been fulfilled, the company will have the opportunity to acquire the remaining 25% of the property, which would allow it to assume full control of the project. In the event LM exercises this additional option, Golden Arrow would receive a 1% net smelter return (NSR) royalty, thus changing its role in the project from partner to royalty recipient.
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Source: Mining Technology
Photo: Shutterstock
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