- Latin Metals (TSXV:LMS) and Yamana Gold have terminated an option agreement regarding the Organullo project in Argentina
- Through the agreement, Yamana had to spend an approximate C$1.47 million in exploration costs and $267,000 in fees to acquire 70 per cent of the property
- Despite this, Yamana has now provided notice it will discontinue funding of the property
- Latin has stated it is now looking for a new joint venture partner to develop the site.
- Latin metals (LMS) is in the grey and is trading at six cents per share
Latin Metals (TSXV:LMS) and Yamana have terminated an option agreement regarding the Organullo project in Argentina.
The terms of the agreement were reached late last year, whereby Yamana could earn itself 70 per cent of the project through an earn-in exploration agreement.
Yamana Gold had to complete a significant amount of exploration on Organullo, spending an approximate C$1.47 million in exploration costs while paying Latin approximately $267,000 in option fees.
Organullo has a lot previous historic work on it, including heavy hitters such as Newmont Mining who have previously explored the site.
57 historic drill holes totalling over 10,000 metres have been drilled into it, and strike extends for some 7 km on the site.
CEO and President of Latin Metals, Keith Henderson said since entering into the agreement, Yamana had spent a considerable sum on the project and completed an extensive amount of exploration work.
“Work has included geological mapping of the target areas, collection 152 soil and 1,039 rock samples and 14 diamond drill holes for a total of 2,804 metres of drilling, with drilling focused ono the Organullo Ridge, where most of the historical work had been undertaken.
“While we are sorry to see Yamana relinquish its option, we believe the potential of the Organullo Projet is excellent with multiple geoccheThemical anomalies defined along the seven-kilometre anomalous trend that remain untested by drilling” Keith commented.
Latin has stated it is now looking for a new joint venture partner to develop the site.
Latin has a variety of copper, gold and silver exploration projects scattered throughout Argentina.
Latin Metals (LMS) is trading in the grey and is trading at six cents per share