Latin Metals amends Cerro Bayo Silver-Gold Project agreement, Santa Cruz Province, Argentina
Latin Metals Inc. [TSXV: LMS; OTCQB: LMSQF] has entered into an amending agreement to complete acquisition of 100% of the Cerro Bayo and La Flora Properties, located in Santa Cruz Province, Argentina. This follows the receipt of drill permits earlier this year, positioning Cerro Bayo as a fully permitted, drill-ready silver-gold exploration asset in one of South America’s premier mining jurisdictions.
Under an option agreement with Tres Cerros Exploraciones S.R.L. (TCE), Latin Metals previously vested a 71% interest in Cerro Bayo. Under the terms of the amended agreement, the company has agreed to purchase the remaining 29% (aggregate 100%) on the following revised terms. Total consideration of US$400,000, payable in three tranches: US$100,000 by June 30, 2025; US$150,000 b June 3y0, 2026 and US$150,000 by June 30, 2027,
TCE retains a 0.75% Net Smelter Return (NSR) royalty. Latin Metals holds a buyback right on 0.5% of the NSR for US$1 million.
The amended agreement revises the previous option consideration of US$753,000 due in May 2025 for 80% and an optional top-up amount of US$800,000 due to be paid in September 2025 for the remaining 20%. The Amended Agreement is a purchase agreement, and payment of the US$400,000 consideration is an irrevocable commitment. The requirement to deliver an NI 43-101 report to Tres Cerros has been eliminated.
“This amended agreement is a win-win for TCE and Latin Metals. TCE has secured committed payments over 24 months, whereas Latin Metals has reduced near-term capital demands, providing the company with greater flexibility to structure a future partner earn-in agreement,” stated Keith Henderson, President & CEO. “Cerro Bayo is fully drill permitted and with these amended acquisition terms, Cerro Bayo is now a standout opportunity for value-focused strategic partners.”
In March 2025, Latin Metals received formal approval of the Environmental Impact Assessment (EIA), authorizing exploration drilling at Cerro Bayo. The approved permit includes authorization for 21 drill pads across the project area. A total of nine high-priority targets defined by historical and recent exploration and the project is year-round accessible, with excellent infrastructure and an experienced workforce in Santa Cruz Province.
Exploration work completed to date, including geochemical sampling, detailed mapping, and over 100 line-km of magnetic surveys, has defined a 6 km-wide structural corridor with multiple low-sulfidation epithermal-style vein targets. Rock chip samples have returned up to 2.1 g/t gold and 460 g/t silver.
Cerro Bayo is located in the heart of the Deseado Massif, a prolific region with over 600 million ounces of silver and 20 million ounces of gold discovered since 1990.(1) The district hosts multiple producing mines and advanced-stage projects, including Newmont’s Cerro Negro Mine (~7 Moz AuEq) and Hochschild’s San Jose Mine (~64 Moz AgEq).
Cerro Bayo’s geological setting, structural controls, and alteration footprint are consistent with known high-grade gold-silver systems in the region.
Latin Metals Inc. is a copper, gold and silver exploration company operating in Peru and Argentina under a prospect generator model, minimizing risk and dilution while maximizing discovery potential. With 18 projects, the company secures option agreements with major mining companies to fund exploration.
Current option holders include AngloGold Ashanti (Organullo Gold Project) and Moxico Resources (Esperanza & Huachi Copper-Gold Projects). Latin Metals is seeking new partners to advance its portfolio.