Latin Metals and Daura Gold Agree to Option Terms for Cerro Bayo and La Flora Projects, Santa Cruz Province, Argentina

Core Viewpoint - Latin Metals Inc. has entered into a binding Letter Agreement with Daura Gold Corp. allowing Daura to earn up to an 80% interest in the Cerro Bayo and La Flora projects, enhancing exploration potential in Argentina's precious metal belt [1][5]. Option Terms - Daura can earn a 75% undivided interest in the Properties over a 38-month period from the effective date of the Agreement [2]. - To exercise the Option, Daura must make total payments of US $1,700,000 to Latin Metals, assume US $400,000 in payments to the Underlying Vendor, and complete exploration work commitments [3]. Exploration Commitments - 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 [4]. Joint Venture Formation - Upon exercising the Option, a joint venture will be formed with Daura holding 75% interest, increasing to 80% if the Top-Up Right is exercised [11]. - Daura will assume Latin Metals' right to repurchase a 0.5% NSR royalty from the Underlying Vendor for US $1,000,000 [12]. Financial Terms of Top-Up Right - Daura can increase its interest to 80% by making cash payments based on the mineral resources estimated in the Technical Report, with specific payment schedules outlined [6][9]. Properties Overview - Cerro Bayo and La Flora are located in the Deseado Massif, a region known for significant precious metal discoveries, with over 600 million ounces of silver and 20 million ounces of gold found since 1990 [16]. - The geological setting of Cerro Bayo aligns with known high-grade gold-silver systems in the area [17]. Strategic Position - The projects are strategically positioned in a prolific mining district, benefiting from existing infrastructure and a skilled workforce [14]. - Exploration work has already defined a 6 km-wide structural corridor with multiple low-sulfidation epithermal-style vein targets [15]. Company Background - Latin Metals operates under a prospect generator model, focusing on minimizing risk and dilution while maximizing discovery potential across its 18 projects [20]. - The company is actively seeking new strategic partners to advance its exploration portfolio [20].