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
[post_relacionado]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