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Gold Project Optioned for Up to $40M
21 Sep
Summary
- Aumin gains option for Organullo Gold Project.
- Option payments total up to $40 million.
- Aumin team has strong Argentina mining background.
Latin Metals Inc. announced a significant development regarding its Organullo Gold Project, located in Salta Province, Argentina. The company has entered into a binding agreement granting Aumin Argentina S.A.U. an option to acquire a 100% interest in the project. This option comes with aggregate cash payments that could reach up to US$40 million for Latin Metals.
The deal involves substantial drilling commitments from Aumin, with a minimum of 40,000 meters over six years. Following Aumin's stock exchange listing, Latin Metals can choose between a 19.9% ownership in the listed entity or a 2% Net Smelter Return (NSR) royalty. An accelerated acquisition option for Aumin exists, potentially increasing the total cash consideration to Latin Metals and entitling Latin Metals to a 2% NSR royalty.
The team behind Aumin, led by Hernán Zaballa, brings extensive experience in Argentina, notably founding AbraSilver Resource Corp. and advancing its Diablillos silver-gold project. This partnership leverages Aumin's deep understanding of Argentine mining law, exploration strategy, and in-country operations.
The Organullo Gold Project itself features an approved Social & Environmental Impact Report for exploration drilling. Historical reports indicate potential exploration targets for gold, and previous work by AngloGold Ashanti identified priority target areas. The project is situated in a geological environment prospective for epithermal and porphyry-style mineralization.
