Daura Gold Secures Option to Acquire up to 80% Interest in the High-Grade Cerro Bayo and La Flora Gold-Silver Projects, Santa Cruz Province, Argentina

Core Viewpoint - Daura Gold Corp has entered into a binding agreement with Latin Metals Inc to acquire up to an 80% interest in the high-grade Cerro Bayo and La Flora gold-silver projects located in the Deseado Massif, Santa Cruz Province, Argentina, enhancing its portfolio of high-quality exploration targets [1][2]. Project Overview - The Cerro Bayo and La Flora projects are situated in a prolific mining district that has produced over 600 million ounces of silver and 20 million ounces of gold since 1990, with notable nearby operations including Newmont's Cerro Negro Mine and Hochschild's San Jose Mine [3][20]. - Exploration has identified a 6-kilometer-wide structural corridor with multiple low-sulfidation epithermal-style vein targets, which are known for hosting high-grade precious metal deposits [4][19]. Exploration and Technical Highlights - Daura has identified nine high-priority drill target areas through geochemical analysis, mapping, and geophysical surveys, with surface samples at La Flora returning up to 71 g/t Au and 150 g/t Ag, and Cerro Bayo showing up to 2.3 g/t Au and 600 g/t Ag [6][19]. - The projects are drill-ready with 21 fully permitted drill pads, following the approval of an Environmental Impact Assessment in early 2025, and are accessible year-round with strong infrastructure [6][18]. Option Terms and Financial Commitments - Daura has the option to earn a 75% undivided interest in the projects over a 38-month period, requiring total payments of US $1,700,000 to Latin Metals and US $400,000 to the underlying vendor, along with specific exploration commitments [7][10]. - Irrevocable work commitments include 50-line km of IP profiling, 150-line km of gradient array IP, and 1,500 meters of drilling, with a total of 28,000 meters of drilling required before exercising the option [8][10]. Joint Venture Structure - Upon exercising the option, a joint venture will be formed with Daura holding a 75% interest, which can increase to 80% through a top-up right, contingent on additional cash payments based on mineral resource estimates [15][17]. - The underlying vendor retains a 0.75% net smelter return royalty, of which 0.5% can be purchased for US $1,000,000, a cost that will be assumed by Daura [9][16].