- Latin Metals (LMS) has signed an agreement with South American Lithium (SAL) over the El Quemado Lithium Project
- SAL will purchase from Latin Metals a 100-per-cent interest in the project, located in the Province of Salta, Argentina, for total consideration of $900,000
- Latin Metals will retain a 2.00-per-cent net smelter returns royalty on the project
- Latin Metals Inc. was down 9.804 per cent, trading at $0.23 at 11:15 AM ET
Latin Metals (LMS) has signed an agreement with South American Lithium (SAL) over the El Quemado Lithium Project.
According to the terms of the agreement, SAL will purchase from Latin Metals a 100-per-cent interest in the project, located in the Province of Salta, Argentina, for total consideration of $900,000.
Latin Metals will retain a 2.00-per-cent net smelter returns royalty on the project.
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 2.0 per cent NSR royalty from future production on the project, half of which (1.0 per cent) 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 per cent 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,” he added.
South American Lithium is a private Canadian corporation which intends to complete a going-public transaction during the second quarter of 2023.
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.
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America.
Latin Metals Inc. (LMS) was down 9.804 per cent, trading at $0.23 at 11:15 AM ET.