Latin Metals (TSXV: LMS)announced Monday that it has entered into a binding option agreement with AngloGold Argentina Exploraciones S.A., a wholly owned subsidiary of AngloGold Ashanti (NYSE: AU, JSE: ANG, ASX: AGG).
Under the terms, Latin Metals granted AngloGold the option to earn up to an 80% interest in the company’s Organullo, Ana Maria, and Trigal Gold projects located in Salta Province, northwestern Argentina.
“AngloGold’s investment of up to $12.57 million for a 75% ownership interest in the projects is a significant investment and, if AngloGold were to exercise its top-up right for an aggregate 80% ownership, additional investments by AngloGold would include delivery of a Mineral Resource estimate,” Latin Metals CEO Keith Henderson said in a news release.
“I am particularly pleased to have concluded this agreement so soon after completing a similar deal with Barrick Gold Corporation in February,” Henderson said. “Securing high-quality partners is a very important part of our prospect generator model and we hope to conclude additional deals as we continue to market our project portfolio.”
Latin Metals stock was up over 14% at market close in Toronto Monday. The company has a $C6.5 million ($5.2m) market capitalization.
