- Latin Metals Inc. (LMS) enters an agreement with Barrick Gold Corporation (ABX) for interest in Argentinian properties
- The Cerro Bayo, Cerro Bayo Sur and La Flora properties are in the Santa Cruz province
- Barrick’s has an initial option to earn 70 per cent , and a second option for a total of 85 per cent
- Latin Metals and Barrick will form a joint venture for the continued exploration of the properties
- Latin Metals Inc. (LMS) is up 33.33 per cent trading at $0.14 per share as of 11:58 a.m. EST
- Barrick Gold Corporation (ABX) is up 0.98 per cent trading at $24.70 per share as of 11:58 a.m. EST
Latin Metals (LMS) has signed an agreement with Barrick Gold Corporation (ABX) for interest in Argentinian properties.
The Cerro Bayo, Cerro Bayo Sur and La Flora properties are in the Santa Cruz province.
Barrick’s earn-in right consists of an initial option to acquire a 70 per cent interest in the properties, and a second option for an additional 15 per cent interest.
The properties are subject to an underlying option agreement where Latin Metals has the right to acquire a 100 per cent interest in the properties.
To exercise the first option by the seventh anniversary of the closing, Barrick must make cash payments totaling US$2.3 million. US$750,000 of must be paid to Latin Metals upon closing.
Barrick will also incur exploration expenditures totalling US$5 million. US$1 million of this is to be spent before the second anniversary of the closing.
Finally, Barrick needs to prepare and deliver a preliminary economic assessment.
For the second option to be earned by the ninth anniversary, Barrick must make additional cash payments to Latin Metals totalling US$425,000.
Barrick will solely fund all costs and deliver a pre feasibility study.
The commitment does not become effective until the parties have entered into an agreement to acknowledge Barrick’s rights and authorize the company to conduct operation.
Latin Metals and Barrick will form a joint venture for the continued exploration of the properties.
Latin Metals Inc. (LMS) is up 33.33 per cent trading at $0.14 per share as of 11:58 a.m. EST.
Barrick Gold Corporation (ABX) is up 0.98 per cent trading at $24.70 per share as of 11:58 a.m. EST.