- Latin American Minerals (LAT) has signed a letter of intent with Altius Resources to acquire the Sail Pond project in Newfoundland
- The staged acquisition will include a number of cash payments to Altius Resources, along with the issuance of common shares
- Altius will also retain a two per cent net smelter return royalty of the project
- The two companies have agreed to a 45-day due diligence period prior to the signing of a definitive agreement
- Latin American Minerals (LAT) is currently up 50 per cent and is trading at C$0.03 per share.
Latin American Minerals (LAT) has signed a letter of intent with Altius Resources to acquire the Sail Pond project in Newfoundland.
Located on the Great Norther Peninsula of the province, the project consists of 540 mineral claims and includes several silver, copper, lead and zinc occurrences.
Under the terms of the agreement, Latin American Minerals will issue 19.9 per cent of its outstanding shares to Altius, a subsidiary of TSX-listed Altius Minerals, upon signing of a definitive deal.
The transaction will also include a minimum expenditure commitment on the project of C$500,000 within the first 12 months, and $1 million within the first three years.
In addition, Latin American Minerals will issue $200,000 in common shares to Altius within 12 months from the date of signing a definitive agreement, or upon the completion of a minimum $2 million financing.
Altius will also retain a two per cent net smelter return royalty on the Sail Pond project .
Mathew Wilson, CEO of Latin American Minerals, said the company has spent the last two years examining all options for its future direction.
“To acquire a project in any market with these surface silver and base metal grades, in such a favorable jurisdiction as Newfoundland, and with district size potential, is an exciting event.
“In our current market environment, with a favourable long-term outlook for metals, and by adding a partner like Altius, Sail Pond stands out as an ideal project,” he added.
Latin American Minerals and Altius have agreed to a 45-day due diligence period prior to the signing of a definitive agreement. The completion of the acquisition is also subject to Altius providing an updated national instrument 43-101 on the project, as well as approval from the TSX Venture Exchange.
Latin American Minerals (LAT) is currently up 50 per cent and is trading at three cents per share at 12:40pm EDT.